The Mexican peso extended gains towards an over 2-week high of 19.9 per USD in late July, amid a stronger risk appetite and higher oil prices after the Fed reassured its dovish stance, while domestic economic data supported hopes that the central bank will maintain a hawkish stance despite the country facing a new pandemic wave. Economic activity was seen rising 0.6% in May over April, faster than forecasts of a 0.3% gain, while Mexico’s jobless rate fell to 4.0% in June from 5.5% a year ago, with 7 million people entering the workforce. Also, the mid-month annual inflation rate stood at 5.75% in July, above the central bank’s long-term target ceiling of 4%. Finally, traders await Q2 national accounts to confirm a strong recovery in the economy, as market expectations see an almost 20% surge in GDP.
Historically, the Mexican Peso reached an all time high of 25.78 in April of 2020. Mexican Peso - data, forecasts, historical chart - was last updated on July of 2021.
The Mexican Peso is expected to trade at 20.28 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 20.92 in 12 months time.