Mexican Peso climbs against US Dollar, despite high US Treasury yields

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The Mexican Peso (MXN) is climbing against the US Dollar (USD) despite high US Treasury yields. The USD/MXN is trading at 17.08, down 0.28%. Mexico's economic docket for the week includes inflation data and the upcoming rate decision by the Bank of Mexico (Banxico). Expectations lean towards Banxico holding rates at 11.25%. The US economy continues to show strength with the release of strong Services PMI and Nonfarm Payrolls data, indicating a soft landing for the Federal Reserve. Banxico meets eight times a year and its monetary policy is influenced by the decisions of the US Federal Reserve. The USD/MXN is currently neutral-biased, with resistance at 17.20 and support at 17.03. The Bank of Mexico's main tool to guide monetary policy is by setting interest rates, which can influence the value of the Mexican Peso. The rate differential with the USD is a key factor. The author of the article has no position in any stock mentioned and no business relationship with any company mentioned.

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https://www.fxstreet.com/news/mexican-peso-slides-amid-powells-hawkish-comments-202402051707