By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Mexican Peso begins to decline against USD due to Trump factor
Share
Notification Show More
Latest News
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Jordan to Host Iraq in the Final Round of the Asian World Cup Qualifiers After Securing Historic Spot
Sports
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > Mexican Peso begins to decline against USD due to Trump factor
Forex

Mexican Peso begins to decline against USD due to Trump factor

News Room
Last updated: 2024/07/05 at 3:42 PM
News Room
Share
4 Min Read
SHARE

The Mexican Peso (MXN) experienced a reversal in its earlier gains against the US Dollar and Euro due to various factors impacting the global currency markets. Mixed results in the US Nonfarm Payrolls report initially weakened the USD, but the increasing likelihood of a Trump presidency led to a rebound, causing the MXN to trade lower. Meanwhile, in Europe, easing political risks relieved pressure on the Euro and the Pound, contributing to the MXN’s overall trading performance.

MXN found support from comments made by the Deputy Governor of the Bank of Mexico (Banxico), Jonathan Heath, expressing skepticism about interest rates falling in Mexico in the near term. This stance was compared to that of Federal Reserve (Fed) Chairman Jerome Powell, indicating a level of consistency in monetary policy outlook between the two countries. As of the latest data, one US Dollar buys 18.17 Mexican Pesos, EUR/MXN trades at 19.65, and GBP/MXN at 23.23.

The Mexican Peso initially saw gains against the US Dollar during the European session on Friday, driven by weak US economic data suggesting a potential impact on interest rates. Factors such as rising Initial Jobless Claims and a contraction in the services sector contributed to the weakening of USD as falling inflation expectations made the Fed more likely to cut interest rates. However, the release of the US Nonfarm Payrolls report temporarily weakened the USD further, with mixed results that ultimately led to a rebound in the currency.

The concept of a “Trump put” emerged as a potential driver for a recovery in US yields and the USD, with investors speculating on a possible Trump victory in the upcoming elections. Trump’s perceived ability to lower taxes and increase deficit spending could impact inflation levels and lead to higher government debt, influencing market sentiment. This scenario contributed to the USD gaining strength and impacting the performance of the MXN in the global currency markets.

Easing political risks in Europe, particularly with regards to the French National Rally party and the UK Labour Party’s electoral victory, impacted the MXN’s performance against the Euro and Pound Sterling. The more stable political climate in both regions supported the respective currencies, leading to a more muted response from the MXN. Technical analysis of USD/MXN suggested a potential downtrend towards key support levels with the possibility of entering a sideways trend in the near future.

The role of the Bank of Mexico (Banxico) in guiding monetary policy and managing the Mexican Peso was highlighted, with a focus on maintaining low and stable inflation levels through interest rate adjustments. The central bank’s decisions are influenced by the US Federal Reserve (Fed), with interest rate differentials between the two countries playing a significant role in currency performance. Banxico’s proactive approach to monetary policy decisions, often reacting to Fed measures, demonstrates its commitment to preserving the value of the Mexican Peso amidst global economic challenges.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room July 5, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Amir departs from Warsaw
Next Article A new meme coin surpasses market crash, secures $2.3 million during crypto turmoil
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World June 28, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?