The Mexican peso remains stable in the last session of May and braces for the elections.

The currency is set to end May on a positive note, in a market that is reviewing the Fed’s rate outlook and preparing for Sunday’s elections.

The Mexican peso remains stable at midday this Friday. The currency is poised to finish May with a positive balance, in a market that is assessing the Federal Reserve’s rate outlook, and in anticipation of Mexico’s election on Sunday.

The exchange rate stands at 16.9973 pesos per dollar. Compared to yesterday’s official closing of 17.0012 pesos, based on Banco de México (Banxico) data, the local currency shows caution with a marginal gain of 0.02 percent.

The dollar price fluctuates between a high of 17.0805 pesos and a low of 16.9190 pesos. The Dollar Index (DXY) from the Intercontinental Exchange, which measures the greenback against a basket of six currencies, fell 0.07% to 104.64 points.

The Personal Consumption Expenditures (PCE) price index rose 0.3% month-over-month and 2.7% year-over-year in April, in line with market expectations. The core index increased 0.2% in April, slowing from March’s 0.3 percent rise.

Traders are closely watching how these data might influence bets on interest rate cuts in the United States. According to CME Group’s FedWatch Tool, futures predict the first rate cut will occur in November.

Meanwhile, local investors are gearing up for Sunday’s elections, in which, among other positions, the president and members of Congress will be elected, determining the dominant ideology for the next six years.

Despite this, the Mexican peso has edged higher in May. With an official closing of 17.1268 pesos in April, it has gained 12.95 centavos or 0.76 percent. Compared to an official rate of 16.9666 pesos in December, it has lost 3.07 centavos or 0.18 percent.