The Mexican Peso recovered at the start of the week following news of the appointment of Scott Bessent as future US Treasury Secretary.
He is expected to have a tempering influence on inflation and focus on targeting primarily China with tariffs.
Technically, USD/MXN opens a market gap and is a possible opportunity for traders amid the unfolding leg higher.
The Mexican Peso (MXN) trades higher in its key pairs on Monday, with the MXN doing particularly well against the US Dollar (USD) due to the perception that with the appointment of the new US Treasury Secretary Scott Bessant, US government spending will be more restrained and tariffs will primarily target China. Overall, Bessant is seen as a tempering influence on the future administration’s more inflationary policies.
The Peso is appreciating against the Euro (EUR) after weak Eurozone economic activity data in the form of Purchasing Manager Indices (PMI) on Friday increased expectations that the European Central Bank (ECB) will slash interest rates in December to stimulate growth. Meanwhile, against the Pound Sterling (GBP), the Mexican Peso trades slightly higher for similar reasons to those of the Euro.
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