Forex
Mexican Peso Loses Ground Against Strong US Dollar
The Mexican Peso (MXN) edged lower against the US Dollar (USD) on Thursday, following solid economic data in the United States. Jobless claims for the week ending August 22 came in at 203K, below estimates of 208K, reinforcing the strength of the labor market.
This news suggests that higher interest rates are warranted, a tailwind for the Greenback. The USD/MXN pair trades near 16.97, up 0.09%.
Market participants' focus is on what Fed Chair Kevin Warsh will say on Friday at Jackson Hole. Some of his colleagues have spoken with the media, reaffirming their monetary policy stance.
A hawkish tilt by Warsh can drive USD/MXN back above 17.00, paving the way for further gains. On the flip side, the pair can retest yearly lows below 16.90.