INSUBCONTINENT EXCLUSIVE:
The Mexican peso hovered around 19.56 per USD on Friday morning, staying near its highest level in over six months as market participants
digested recent economic data.The USD/MXN decreased 0.19% to 19.5724 from 19.6100 in the previous trading session, continuing its downward
trend that began in April
The agricultural sector drove most gains with an impressive 8.1% quarterly growth, offsetting weaknesses elsewhere.Meanwhile, industrial
output contracted by 0.3% and services showed no growth compared to the previous quarter
These numbers reveal underlying fragility despite the headline GDP figure.The economy expanded by just 0.6% year-on-year in seasonally
adjusted terms, highlighting continued challenges
as Mexico Navigates Economic Crosscurrents
(Photo Internet reproduction)This data point contrasts with sluggish economic growth and signals a complex labor market dynamic
The number of unemployed people decreased by 39,486 to 1.357 million during this period.The peso ended April with a 4.14% gain against the
tensions between the United States and China have additionally benefited the Mexican currency
Technical indicators suggest continued peso strength in the short term.Peso Resilience Amid Economic StrainThe USD/MXN pair has found
support above 19.58, with resistance at 19.70
The 20-day moving average recently crossed below the 200-day moving average, reinforcing bearish sentiment for the dollar against the
peso.Core inflation accelerated to 3.9% in mid-April, reinforcing expectations that Banxico may pause its easing cycle
This potential pause helps maintain a wide real-rate differential that continues attracting carry-trade inflows to Mexico.Despite current
peso strength, analysts project the USD/MXN to trade at 19.84 by the end of this quarter and reach 20.86 in 12 months
Without stronger investment and clearer trade prospects, growth will likely remain subdued through the year.The currency market currently
