Mexican Peso consolidates ahead of Retail Sales data

The Mexican Peso is consolidates before the release of Mexican Retail Sales data. 

The MXN ended a five-day winning streak on Wednesday after the Mexican Congress voted through more controversial reforms. 

USD/MXN could be unfolding an up leg within a range that is part of a larger Measured Move pattern.

The Mexican Peso (MXN) consolidates in its most-heavily traded pairs during the European session on Thursday. This follows the Peso’s average half-a-percent fall in its key pairs on Wednesday, which marked an end to a five-day winning streak. 

The factors leading to the Peso’s weakness on Wednesday include comments from the Governor of the Bank of Mexico (Banxico) Victoria Rodríguez Ceja, the voting through by the Mexican Congress of controversial reforms to autonomous bodies, and heightened geopolitical risk from Russia’s decision to lower the bar for its use of nuclear weapons. Higher geopolitical tensions tend to disproportionately disadvantage risk-sensitive emerging market currencies such as the MXN.