Mexican Peso soars and breaks key level as bull’s eye 2023 high

• Mexican Peso benefits from US Dollar weaknesses, shrugging off Banxico rate cut.
• Banxico Governor emphasized cautious approach to rate adjustments, stressing ongoing inflation battle.
• Mixed economic updates from both Mexico and the US leave traders weighing Fed’s rate cut discourse against actual data.

The Mexican Peso capitalized on broad US Dollar weakness on Monday, climbing more than 0.1% in the mid-North American session. A risk-off impulse was no excuse for the Mexican currency’s bulls despite last week’s interest rate cut by the Bank of Mexico (Banxico). Additionally, traders ignored comments from Federal Reserve’s (Fed) members as the Greenback remains pressured. The USD/MXN trades at 16.69, down 0.28%.

 Mexico’s economic docket is absent, though Banxico Governor Victoria Rodriguez Ceja crossed the wires. She said that the first rate cut does not mean the battle against inflation is over. She added that the central bank would be gradual, and adjustments to the main reference rates would be made taking into account upcoming data.