Mexican Peso Gains Against the Dollar in First Session of September
Attention now shifts to U.S. labor data: the JOLTS job openings survey on Wednesday, and ADP private payrolls on Thursday.
Quick overview
- The Mexican peso ended Monday's session slightly stronger against the dollar, closing at 18.6428 per dollar.
- The exchange rate showed a minor gain of 0.10% as markets prepared for a week of significant U.S. labor data releases.
- Short-term support levels for the peso are identified at 18.60 and 18.50, with market activity subdued due to the U.S. holiday.
- Upcoming U.S. labor reports will be crucial for the Federal Reserve's policy decisions.
The peso ended Monday’s session little changed in thin trading, as markets positioned for a busy week of U.S. labor data releases.
The Mexican currency appreciated marginally against the dollar, starting September with a slight advance. The exchange rate closed at 18.6428 per dollar, compared with Friday’s official close of 18.6615, according to Banco de México (Banxico). That represented a gain of 1.87 centavos, or 0.10%.
During the day, the dollar traded between a high of 18.6694 and a low of 18.6028 pesos. Meanwhile, the ICE U.S. Dollar Index (DXY), which tracks the greenback against six major currencies, slipped 0.10% to 97.67.
Mexican Peso Technical Outlook and Drivers
Short-term support for the peso remains at 18.60 and 18.50, with markets calm amid the U.S. holiday and a lack of fresh catalysts. According to Banxico’s latest survey, expectations for the peso’s 2025 year-end level eased to 19.50 from 19.80, while the policy rate is now forecast at 7.25% versus 7.50% previously, implying an additional 50 basis points of cuts.
Attention now shifts to U.S. labor data: the JOLTS job openings survey on Wednesday, ADP private payrolls on Thursday, and the key nonfarm payrolls and unemployment report on Friday. These will be critical inputs for the Federal Reserve’s dual mandate.
For now, with no major headlines, markets continued to digest Friday’s U.S. inflation report and a court ruling that struck down most of the tariffs imposed by President Donald Trump as illegal.
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