• Mexican Peso is slightly up versus the US Dollar on cautious trading as Consumer Confidence deteriorates.
• Decrease in Mexico's Consumer Confidence and Manufacturing PMI slowdown highlight challenges amid Banxico's rate adjustments.
• Remittances remain a key support for the Peso, overshadowing near-shoring gains amid broader economic considerations.

The Mexican Peso prints minuscule gains against the US Dollar on Thursday after the release of economic data from Mexico and the United States (US). That and recent Federal Reserve officials crossing the newswires keep the American currency pressured amid rate cut speculation. At the time of writing, the USD/MXN trades at 16.54, down 0.01%.

Mexico’s economic docket witnessed a drop in March’s Consumer Confidence, according to the National Statistics Agency (INEGI). Data shows the economy is still growing but began to lose some momentum as March’s Manufacturing PMI decelerated amid higher interest rates set by the Bank of Mexico (Banxico).

Meanwhile, Mexico’s remittances continued to be the main driver of the Peso’s strength. There’s speculation about near-shoring, but according to an article by EL CEO, in 2023 Foreign Direct Investment (FDI) stood at $36.058 billion, while remittances amounted to $63.345 billion. Sources cited by EL CEO stated, “We must not fail to point out that this is a gap in Mexico's productive capacity and a lack of opportunities. We are getting the kind of external savings.”

The US economy witnessed a cooler labor market as more Americans applied for unemployment benefits. The Balance of Trader revealed that the deficit widened compared to January’s data.