Mexican Peso holds strong against US Dollar despite sour market sentiment

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• Mexican Peso extends its gains and is set to finish below the 18.12 mark.
• Mexico’s trade deficit widens, but Peso holds gains amidst flight to safety in markets.
• US inflation data justifies higher interest rates, but the market is skeptical of the Fed raising rates past the current range.

Mexican Peso (MXN) remains firm, posting decent gains vs. the US Dollar (USD) late in the North American session even though market sentiment shifted sour on Middle East conflict escalation, despite economic data from Mexico being worse than estimated. The latest inflation report from the United States (US), although it justifies higher interest rates, failed to underpin the USD/MXN, which is set to finish the week at 18.09, down 0.24%.