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\n Share:<\/span><\/p>\n The Mexican Peso (MXN) plunged more than 1.62% against the US Dollar (USD) late in the New York session due to month-end flows favoring the USD, mixed US data, as well as Bank of Mexico (Banxico) news<\/a>. Therefore, the USD\/MXN is trading at 17.0079 after hitting a daily low of 16.7083.<\/p>\n Wall Street trades mixed as investors brace for August\u2019s Nonfarm Payrolls<\/a> report release. Analysts estimate the US economy added 170K jobs, 17K less than July\u2019s data, while Average Hourly Earnings are foreseen at 4.4% YoY, unchanged. Later in the day, the Institute for Supply Management (ISM) will reveal the Manufacturing PMI, estimated at 47, above July 46.4, with most subcomponents seen increasing except for the employment index.<\/p>\n Aside from this, the US economic agenda on Thursday revealed the Federal Reserve\u2019s preferred gauge for inflation, the Personal Consumption Expenditure<\/a> (PCE), was 3.3% YoY, as expected, but exceeded June\u2019s 3%. Core PCE<\/a>, sought by Fed members as its focal point, is stickier than what policymakers were projecting, stands at 4.2% YoY as foreseen but above the previous month\u2019s 4.1%. At the same time, the unemployment claims came below estimates of 235K, at 229K, contrary to earlier data revealed during the week, that underscored the labor market was losing traction.<\/p>\n That said, the USD\/MXN edged higher, not only on US data. Banxico reported that it\u2019s winding down its hedge program settled in Mexican Pesos.<\/p>\n The exotic pair rallied sharply and touched a daily high of 17.1114 before reversing its course below the 17.0000 mark. However, traders are eyeing a daily close above 17.0000, with USD\/MXN buyers setting their sights on the 100-day Moving Average (DMA) at 17.3072.<\/p>\n In the meantime, the US Dollar Index<\/a>, which measures the buck\u2019s value against a basket of six currencies, rises by 0.41%, at 103.606. US Treasury bond yields and worldwide remain depressed as traders prepare for Friday\u2019s Nonfarm Payrolls report.<\/p>\n Aside from this, Banxico\u2019s Governor Victoria Rodriguez Ceja took off from the table rate cuts, as she added, \u201cThe outlook ahead continues to be complex and uncertain. It\u2019s important to remember that disinflation periods are not linear.\u201d Should be said, Banxico raised growth estimates for Mexico\u2019s economy in 2023 to 3%, above the previous estimate of 2.3%.<\/p>\n\n
Mexican Peso drops over 1.60% vs. USD amid mixed US data, Banxico\u2019s decision to wind down hedge program<\/h2>\n