Mexican Peso rallies to two-year high on US Treasury buyback
The Mexican Peso rallies to a two-year high of 16.94 as the US Dollar weakens amid falling US yields, which retreated after the US Treasury doubled the size of its long-duration bond buyback. The USD/MXN trades at 16.95, down 0.27%.
USD/MXN slides as lower US yields offset Iran uncertainty
Market mood has improved even though the odds for a quick resolution of the US-Iran conflict seem far from materializing in the short term.
Headlines in the Middle East show mixed stances of Tehran and Washington. For example, the
Iranian Deputy Parliament Speaker said that “We consider the Strait of Hormuz part of Iran and the Islamic Republic will continue to administer it.” At the same time, an Iranian official said that US President Trump's threats to bomb Iran are illogical and have no effect, referring to his statements as absurd, reported Al Mayadeen.
At around 18:00 GMT, the Federal Reserve is likely to release its final meeting minutes. The US economic docket for the remainder of the week includes Initial Jobless Claims, a speech by St. Louis Fed President Alberto Musalem, and the release of S&P Global Flash PMIs.
USD/MXN traders are eyeing the minutes of the Bank of Mexico (Banxico) from its last meeting on Thursday, followed by Retail Sales on Friday. Estimates suggest that sales are expected to increase 0.1% MoM in June, up from a contraction of 0.6% in May. For the twelve months to June, Retail Sales are forecast to rise from 1.6% to 3.1% due to the World Cup.
Besides this, the Peso is favored by the US decision to delay 50% tariffs on Canada, said Janneth Quiroz. Monex’s Director of Economic Analysis.
USD/MXN Price Forecast: Technical Outlook
In the weekly chart, USD/MXN trades at 16.9672, extending its slide beneath the longer-term simple moving averages, with the latest triple SMA reading clustered around 17.7337 as overhead supply. The pair remains capped by a sequence of descending resistance trend lines, with the more recent structure rejecting prices near 17.0058, reinforcing a bearish near-term bias. The Relative Strength Index (14) at 35.9 stays below the neutral 50 line, hinting at persistent downside pressure rather than oversold exhaustion.
On the topside, initial resistance is seen near the recent trend-line rejection around 17.0058, ahead of the broader triple simple moving average cluster at 17.7337. A stronger barrier emerges toward the earlier descending resistance line, where price last stalled around 17.9000, and only a sustained break above these levels would start to ease the prevailing bearish tone. With no clear structural supports defined in the current dataset, further weakness would leave USD/MXN probing for new demand zones below the recent 16.9672 close.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Australian Dollar breaks 0.69 as hot US CPI raises 50-bp Fed hike risk
Philadelphia Fed President Paulson supports gradual rate hikes but warns inflation is still “stuck ” above target
Core inflation is "stuck" in the 2.5%-3% range, with triple pressures from tariffs, energy, and AI data center demand. Paulson insists on gradual rate hikes while setting clear trigger conditions—if inflation expectations shift upwards or wage pressures build, he will move more quickly. Meanwhile, Governor Waller stated that if October's core CPI rises 0.3% month-on-month, a 50 basis point rate hike in December should be considered. Dallas Fed's Logan said at least two more rate hikes are needed.
During Anthropic IPO roadshow, OpenAI also discloses financial data: Q3 revenue falls short, losses far exceed expectations
OpenAI's revenue in Q3 reached $10 billion, marking a nearly 50% quarter-on-quarter increase. Its annualized run rate is approximately $50 billion, but operating losses have expanded from $10.1 billion to $10.9 billion. Competitor Anthropic has begun its IPO roadshow, with Q3 revenue of $17 billion and losses of only $567 million, leading in both scale and profitability.
Petrobras (PBR.US) Achieves Record Oil and Gas Production in Q3; Adjusted Net Profit Up 78% Year-on-Year, Raises Full-Year Production and Capital Expenditure Guidance
Petrobras released its Q3 2026 financial results after the US market close on November 10.
Crypto prices
More
