Mexican Peso Rises as USD Weakness Persists Amid Iran Conflict
The Mexican Peso has appreciated against the US Dollar in recent trading, despite the escalation of the US-Iran conflict and the subsequent jump in oil prices. The USD/MXN pair has slipped below 17.00, with the DXY dropping 0.25% as a result of risk aversion.
The increase in oil prices, which pushed West Texas Intermediate (WTI) past $85.00, was triggered by strikes between the US and Iran. However, this did not have a significant impact on the FX space, with most traders punishing the Greenback.
The Fed's potential rate hike is still seen as a major driver of the Peso's upside, with Prime Terminal data indicating a 65% chance of a 25 basis point increase at the September 16 meeting. The upcoming release of ISM Manufacturing and Services PMIs, along with US jobs data, will be closely watched for any signs of economic activity.