Mexican Peso advances against the US Dollar ahead of Mexico’s inflation report

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• Mexican Peso stages a comeback as the USD/MXN breaks key support at the 100-day SMA, eyeing 17.00.
• Mexico’s Consumer Confidence has improved the most since 2019.
• US ADP Employment Change was softer than expected, weighed on the US Dollar.

Mexican Peso (MXN) gains traction against the US Dollar (USD) as the soft-landing narrative takes place in the financial markets. Expectations for rate cuts by major central banks next year sent global bond yields into a tailspin, while the Greenback (USD) remains firm. Nevertheless, the USD/MXN is trading at 17.25 below its 100-day Simple Moving Average (SMA), posting daily losses of 0.74%.