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Mexican Peso rallies against US Dollar amid upbeat jobs data

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  • Mexican Peso gains 0.25%, buoyed by strong employment figures and general USD weakness.
  • Despite positive US JOLTs data, Banxico's willingness for bigger rate cuts supports MXN's strength.
  • Mixed Fed signals on rate cuts; upcoming US labor data could impact Fed's December policy decision.

The Mexican Peso recovers some ground on Tuesday and climbs against the US Dollar, sponsored by positive jobs data and overall weakness in the American currency. The Greenback weakened despite an upbeat Job Openings & Labor Turnover (JOLTs) report in the US, which could prevent the Federal Reserve (Fed) from easing policy at the December meeting. At the time of writing, the USD/MXN trades at 20.32, down by 0.25%.

Mexico’s National Statistics Agency ( INEGI) revealed that the labor market remains solid, which justified the Bank of Mexico's (Banxico) easing cycle. Despite this, other data showed that Gross Fixed Investment contracted in September.

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