Mexican Peso Surges Amid Strong Economic Growth Expectations

The Mexican Peso has gained strength against the US Dollar, as traders await Banxico's monetary policy meeting this week. The USD/MXN exchange rate currently stands at 17.32, down 0.14%.

Last week, Mexico's economic data showed a surprising increase in growth, with GDP expanding by 1.5% QoQ in the second quarter, up from a -0.6% contraction in Q1. This has boosted risk appetite and made the peso more attractive for carry-trade investors.

Banxico's interest rate decision is scheduled for August 6, with economists expecting a hold at 6.50%. The majority of private economists surveyed by Banxico have trimmed their inflation forecasts for this year and raised GDP projections, anticipating growth to reach 1.20%.