• Mexican Peso slumps after hitting a low of 19.18, driven by risk-on sentiment favoring the US Dollar.
• Mexico's economic docket highlights an increase in the Jobless Rate to 3.0%, with focus turning to upcoming inflation data and Banxico’s September meeting minutes.
• US Nonfarm Payrolls for September exceeded expectations last Friday, adding 254K jobs as the Unemployment Rate fell to 4.1%.

The Mexican Peso begins the week on the back foot and falls some 0.50% against the Greenback amid a risk-on impulse that keeps the US Dollar trading near seven-week highs. Last week’s outstanding US Nonfarm Payrolls (NFP) data boosted the Mexican currency, but fears of an escalation of the Middle East conflict spurred flows to safe-haven currencies. The USD/MXN trades at 19.33 after bouncing off daily lows at 19.18.

On Friday, the US Bureau of Labor Statistics (BLS) revealed that over 254K people were added to the workforce in September, crushing estimates of 140K and August’s upwardly revised figure of 159K. Consequently, the Unemployment Rate edged lower from 4.2% to 4.1%.

Following the data, the USD/MXN dropped to a new monthly low of 19.10, though it closed near last Friday's highs, opening the door for a recovery.

Money markets trimmed the odds for a 50-basis-point (bps) rate cut by the US Federal Reserve (Fed) at the upcoming November meeting. Data from the Chicago Board of Trade (CBOT) via the December fed funds rate futures contract shows investors estimate 49 bps of easing by the Fed toward the end of 2024.

Data-wise, Mexico’s docket revealed that the Jobless Rate increased from 2.9% to 3.0%, while Automobile Production and Exports improved.