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The Mexican Peso (MXN), which is especially sensitive to risk aversion, trades overall lower on Thursday after weakening on souring market sentiment<\/a> and rising geopolitical tensions. Still, the Peso is holding up against the US Dollar (USD), which sees renewed weakness ahead of the release of key US macroeconomic data.\u00a0\u00a0<\/p>\n The Mexican Peso is losing ground due to a broad dip in market sentiment. Equities are down by 0.66% overnight and Meta\u2019s stock tumbled 15% in after-hours trading on Wednesday despite better-than-expected earnings. The stock\u2019s decline was put down to the company\u2019s Q2 profit guidance, which came in at the lower end of projections, according to analysts at Deutsche Bank.\u00a0<\/p>\n The Peso may also have been impacted by a notch-rise in geopolitical tensions, after Israel said they had struck around 40 Hezbollah targets in Lebanon.\u00a0<\/p>\n \u201cCurrently, investors don\u2019t appear as concerned as they were last week after Iran\u2019s strikes\u2026However, there are still nerves about the prospect of a further escalation, and the Israeli shekel (-0.26% against the US Dollar) lost ground after the headlines came through,\u201d the Deutsche team wrote in a note on Thursday morning.\u00a0<\/p>\n The Mexican Peso is down against the Euro on Thursday after benchmark German Bund yields spiked higher following comments from the President of the Bundesbank and European Central Bank (ECB) governing council member, Joachim Nagel.<\/p>\n Nagel said, on Wednesday, that although the ECB would still probably go ahead with a rate cut in June, further cuts down the road might not follow.\u00a0<\/p>\n Continued stubborn wage-related inflation in the services sector was the main bugbear, said Nagel, who added that until inflation had come down in a sustainable manner the ECB could not commit to a \u201cpre-commit to a particular rate path.\u201d\u00a0<\/p>\n The Mexican Peso (MXN) limps higher against the US Dollar<\/a> (USD) in early trading on Thursday after a volatile midweek that saw the Peso eventually lose to the Greenback following better-than-expected US Durable Goods Orders on Wednesday.\u00a0<\/p>\n The US Census Bureau revealed that Durable Goods Orders in the United States<\/a> increased 2.6% MoM in March, up from a 0.7% rise previously, and beating estimates of 2.5%. The data provided something of an antidote to the poor performance of US Manufacturing and Services PMI data released on Tuesday.<\/p>\n USD\/MXN traders will now look to preliminary US Q1 GDP<\/a> data out at 12:30 GMT for guidance. If the data shows continued strong growth in the US economy, it could help restore the image of US exceptionalism that has helped propel the Greenback higher in most pairs over recent weeks.\u00a0<\/p>\n USD\/MXN corrects in its short-term downtrend but more weakness is probably eventually on the cards.\u00a0\u00a0<\/p>\nMexican Peso hit by negative risk sentiment\u00a0<\/h2>\n
Mexican Peso weakens versus Euro\u00a0<\/h2>\n
Mexican Peso limps higher vs. US Dollar<\/h2>\n
Technical Analysis: USD\/MXN corrects in short-term downtrend\u00a0<\/h2>\n
USD\/MXN 4-hour Chart\u00a0<\/h3>\n