Mexican Peso gains against US Dollar, shrugging off weak retail sales, risk aversion

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• Mexican Peso stays defensive, posting over 1% weekly loss vs. the US Dollar.
• August Retail Sales in Mexico show a mixed picture, with gains over the year but a monthly plunge and signs of deceleration.
• Geopolitical risks cap Peso’s gains, including tensions in the Middle East and US military base attacks.

Mexican Peso (MXN) registers solid gains against the US Dollar (USD) at the end of the week, though it remains printing weekly losses of more than 1%, as risk-aversion took its toll against risk-perceived currencies in the Forex markets. On Friday, the USD/MXN was trading at around 18.19, down 0.67%, although Retail Sales from Mexico showed the economy has been hit by higher interest rates set by the Bank of Mexico (Banxico).