Mexican Peso falls after 3-day gain, influenced by Federal Reserve rate cut expectations.

The Mexican Peso fell on Monday after three days of gains, having appreciated about 3.9% against the USD, EUR, and GBP last week. This rise was influenced by expectations of a larger Federal Reserve interest rate cut. The Bank of Mexico's higher interest rate of 10.75% attracts capital, while weak UK GDP and revised EU forecasts also aided the Peso. The upcoming Fed interest rate decision could significantly influence the USD/MXN currency pair. Traders are advised to manage risk amid market volatility.

September 16, 2024
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