Mexican Peso gains over 0.7%, capitalizing on US Dollar pullback triggered by Japanese intervention in Forex markets.
Mexico's economic agenda is light today, but pivotal releases like GDP figures and Banxico's forex reserves are due later in the week.
USD/MXN traders’ focus shifts to Wednesday’s Fed monetary policy decision.
The Mexican Peso capitalizes on a softer US Dollar and registers more than 0.7% gains following Japanese authorities' intervention in the forex market. Consequently, the Greenback is the laggard during the session ahead of a busy economic docket in the United States (US), with traders focused on the Federal Reserve’s (Fed) monetary policy meeting on Wednesday. The USD/MXN trades at 17.00 after hitting a daily high of 17.24.
Mexico’s economic docket will remain absent during the day, but on Tuesday the release of Gross Domestic Product (GDP) figures could likely trigger some activity in the USD/MXN pair. On May 2, the Bank of Mexico (Banxico) will reveal Foreign Exchange Reserves, followed by Business Confidence, April’s S&P Global Manufacturing PMI, and Gross Fixed Investment on May 3.
Across the border, Wall Street registers gains, portraying a risk-on mood among investors, thus lending a lifeline to the Mexican Peso. This week, the US economic docket would be busy, though the most significant events will be the releases of the ISM Manufacturing PMI and the Fed’s monetary policy decision on May 1, followed by the Nonfarm Payroll figures on Friday and the ISM Services PMI.
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