Mexican Peso Rally Halts Before US Inflation Data

The Mexican Peso gave back some of its recent gains against the US Dollar to start the week. Profit-taking emerged after the pair’s sharp drop late last week on a weaker-than-expected US employment report.

USD/MXN edged up to trade around 17.14 on Monday, a modest gain for the greenback. The move paused a rally that had sent the Peso to multi-year highs.

Traders now look to Wednesday’s US consumer price index release for the next directional cue. A soft inflation print could revive expectations for Federal Reserve rate cuts and weigh on the Dollar, while a firmer number may extend the Peso’s pause.