Quick overview

Live USD/MXN Chart

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The peso closed with little change after briefly climbing to 18.80 earlier in the session, as investors grew uneasy over Donald Trump’s attempt to dismiss a senior Federal Reserve official.

Mexico’s currency edged higher against the dollar in midweek trading, ending virtually flat after starting the day under pressure in a market awaiting key U.S. economic data. The exchange rate finished at 18.6596 pesos per dollar, compared with Tuesday’s close of 18.6663, according to official data from Banco de México (Banxico). That move represented a marginal gain of 0.04% for the peso—less than a cent.

During the session, the dollar traded in a range between a high of 18.7978 and a low of 18.6508. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, slipped 0.05% to 98.19 points.

Traders remained on edge earlier in the day after reports that President Trump sought to fire Federal Reserve Governor Lisa Cook, a move that rattled market confidence.

Fed Concerns Linger

The key question on trading desks now is whether Trump is attempting to exert control over the Fed through such actions. Market participants worry that replacing Cook with a Trump-aligned figure could undermine the central bank’s credibility in its dual mandate of controlling inflation and supporting employment.

Earlier in the session, the exchange rate tested resistance twice near the 18.80 level, forming a double top before retreating back toward 18.66 per dollar—close to its previous close.

Focus on U.S. Data

Markets are now looking ahead to Thursday’s release of second-quarter U.S. GDP figures, which could provide critical signals for the Fed’s policy path. A slowdown would reinforce expectations that the central bank will cut interest rates by 25 basis points in September—a move currently priced in with an 89.2% probability, according to the CME FedWatch tool.

This week’s spotlight remains on U.S. growth data alongside Friday’s release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge.