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The Mexican peso strengthened slightly against the U.S. dollar on Thursday, supported by weakness in the greenback after the release of U.S. GDP and jobless claims figures.

The exchange rate closed at 18.6439 pesos per dollar, compared with 18.6596 in the prior session, according to official data from the Bank of Mexico (Banxico). This represented a gain of 1.57 centavos, or 0.08%.

The dollar traded in a range between a high of 18.6887 and a low of 18.6043. The U.S. Dollar Index (DXY), which measures the greenback against six major currencies, slipped 0.33% to 97.87 points.

Focus on U.S. Outlook

U.S. GDP grew 3.3% quarter-over-quarter in the second quarter, exceeding a preliminary estimate of 3.0%. Another report showed jobless claims fell last week. Traders remain focused on the broader U.S. economic outlook and monetary policy, with markets awaiting comments from Federal Reserve Governor Christopher Waller at an event in Miami.

Waller is considered one of the top contenders to succeed Jerome Powell as Fed chair when his term ends, making his remarks especially relevant for interest rate expectations.

Rate Cut Bets

Attention now turns to Friday’s release of the Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation gauge, which could shape expectations ahead of the September policy meeting.

According to CME’s FedWatch tool, markets broadly expect a 25-basis-point rate cut, after the central bank has held rates steady at 4.25%-4.50% so far this year. Longer-term expectations remain divided.