Mexican Peso Gains as USD Weakness Trumps Iran Conflict Tensions

The Mexican Peso (MXN) strengthened by about 0.20% against the US Dollar (USD) on Monday, despite risk appetite deteriorating due to escalating tensions between the US and Iran.

This escalation triggered a surge in energy prices, exerting upward pressure on US bond yields based on speculation that the Federal Reserve will raise interest rates.

The USD/MXN pair currently trades at 16.99 after reaching a daily high of 17.04, with the US Dollar Index (DXY) down 0.25%.

Traders' attention is focused on the upcoming economic data releases in the US, including ISM Manufacturing and Services PMIs, which will provide insights into economic activity.