Mexican Peso Rallies Paused Ahead of US Inflation Data

The Mexican Peso (MXN) has paused its rally against the US Dollar (USD), ahead of Wednesday's release of US inflation figures. The USD/MXN is trading at 17.14, a modest gain of 0.05%.

Last week, the Greenback was pressured by intervention in the FX markets by US and Japanese authorities aimed at strengthening the Japanese Yen. However, this move is fading as the US Dollar Index (DXY) posts gains of over 0.20%.

The DXY sits at 99.80, after refreshing two-month lows at 99.40. July's Nonfarm Payrolls were worse than expected, with the economy slashing jobs, but the Unemployment Rate ticked lower from 4.2% to 4.1%. Traders will also watch the release of Initial Jobless Claims on Thursday for possible cracks in the labor market.