Mexican Peso rises, poised for weekly gains ahead of Fed meeting

• Mexican Peso advances as USD/MXN plunges below 19.90, down over 1%.
• The Peso shrugs off Mexico’s weak industrial output and declining consumer confidence fueling recession concerns.
• US consumer sentiment plunges amid rising inflation expectations, driven by upcoming Trump administration tariffs.

The Mexican Peso (MXN) rallied against the US Dollar (USD) on Friday, ignoring softer-than-expected economic data revealed during the week that suggests the economy might slow down. A deterioration of consumer sentiment in the United States (US) exerted pressure on the Greenback, which is poised to finish the week with losses. The USD/MXN trades at 19.86, down more than 1%.

The market mood turned buoyant, a tailwind for the emerging market currency. Dismal reports in Consumer Confidence and Industrial Production in Mexico paint a gloomy economic outlook, further confirmed by Banco de Mexico (Banxico) Director of Economic Research Alejandrina Salcedo Cisneros.