Despite a moderation in risk aversion, the peso falls in a market preparing to receive significant economic data from the United States this week.

The Mexican peso returns to negative territory on Monday morning. The local currency, which had moderated its steep decline at the end of last week, is trading with losses, despite a reduction in nervousness related to the Middle East in the markets.

The spot exchange rate is at 17.1812 units per dollar. Compared to the official closing rate of 17.1166 units per dollar set by the Bank of Mexico (Banxico) on Friday, this represents a setback of 6.46 cents, equivalent to 0.38 percent.

The price of the dollar moves this morning with a high of 17.2475 units and a low of 17.0119 pesos. The Dollar Index (DXY) from the Intercontinental Exchange, which compares the dollar against six currencies, is up 0.11% at the level of 106.27 units.

Despite a moderation in risk aversion, the peso falls in a market preparing to receive data from the U.S. economy. Specifically, GDP growth and personal consumption expenditure prices data are noteworthy.
The peso’s decline is due to caution ahead of the release of significant economic indicators during the week, which could influence expectations for the Federal Reserve’s monetary policy.

Locally, relevant data will also be released in the coming days. This Wednesday, the inflation report for the first half of April stands out, which would offer new clues about the next steps for Banxico’s interest rates.

Last week, the peso lost more than 2.7% of its value in its worst performance in a week since October, dragged down by growing tensions in the Middle East. Therefore, attention is not completely diverted from the tension in the Middle East.