Mexican Peso Gains as Trade Talks Show Promise

Trade talks between Mexico and the US have boosted the Mexican Peso against the US Dollar. The USD/MXN currency pair has moved back below 17.00, according to Societe Generale. This comes after a meeting between Economy Minister Ebrard and US Commerce Secretary Howard Lutnick at the G20 summit.

Ebrard highlighted a significant drop in Mexico's car imports from China, falling by 31.1% year-over-year (yoy) in the first half of 2023 to 158,571 units. This decrease was attributed to tariff adjustments aimed at protecting around 350,000 local jobs.

President Sheinbaum remains optimistic about reaching a trade agreement with the US soon.