Mexican Peso Stays Strong as Week Opens Against the Dollar
Market participants are also awaiting several U.S. employment reports this week for clues on the Federal Reserve’s policy outlook.
Quick overview
- The Mexican peso experienced minimal changes against the dollar, closing at 18.3666 per dollar.
- Investors are focused on the potential U.S. government shutdown, which could occur if Congress fails to pass a funding bill.
- The peso's stability is influenced by expectations of Federal Reserve rate cuts, with key U.S. labor market data releases expected this week.
- A government shutdown could delay the release of important economic data, including nonfarm payrolls and unemployment rates.
The Mexican peso ended Monday’s session with minimal changes against the dollar, as investors remained focused on the potential for a U.S. government shutdown.
The exchange rate closed at 18.3666 per dollar, compared with 18.3602 on Friday, according to official data from Banco de México (Banxico). The move represented a marginal loss of 0.03% for the peso—less than a cent.
During the session, the dollar traded in a range between a high of 18.3746 and a low of 18.2951. The ICE Dollar Index (DXY), which measures the greenback against a basket of six major peers, slipped 0.19% to 97.96 points. Throughout the week, peso performance will be shaped by U.S. labor market data releases and developments surrounding the potential government shutdown.
U.S. Shutdown in Focus
In the near term, traders are keeping a close eye on the possibility of a partial shutdown of U.S. government operations. Such an event could materialize at midnight on Tuesday if Congress fails to pass a funding bill. So far, Republicans and Democrats have shown little sign of reaching a temporary spending agreement to avoid a halt in government activity. President Donald Trump has called a meeting with congressional leaders in an effort to bridge differences.
Labor Market Data in the Spotlight
Market participants are also awaiting several U.S. employment reports this week for clues on the Federal Reserve’s policy outlook, amid expectations of two additional rate cuts this year. The peso’s relative stability against the dollar continues to be driven largely by those Fed rate-cut expectations.
Key releases on the calendar include the Job Openings and Labor Turnover Survey (JOLTS), ADP private payrolls, and service and manufacturing figures ahead of Friday’s all-important nonfarm payrolls and unemployment rate report.
It is worth noting that if a government shutdown takes place, the release of these economic data points could be delayed.
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