The USD/MXN remains below 19.00 while Trump gives Mexico a 90 -day relief of the 30% tariff increase

  • The USD/MXN maintains losses before the non -agricultural payrolls of the US that will be published on Friday.
  • President Trump gave Mexico a 90 -day relief of the planned increase of 30% in tariffs on many products.
  • The US dollar advanced after the PCE report indicated that the Fed could delay feat cuts up to at least October.

The USD/MXN drops slightly after registering profits in the previous five consecutive days, quoting around 18.90 during Friday’s Asian hours. The Par faces difficulties since the Mexican weight (MXN) could gain ground after the decision of US President Donald Trump to grant more time to negotiate a broader commercial agreement by granting Mexico a 90 -day relief of the highest tariffs of 30% on many products.

United States (USA) exempt non-automotive and non-metallic goods from Mexico, which comply with the treaty between Mexico, the United States and Canada (T-MEC), of a 30%tariff. This decision was made after a call between Trump and Mexican president Claudia Sheinbaum. On Thursday, Sheinbaum published in X: “We avoid the increase in tariffs announced tomorrow,” and added that Trump’s call was “very good,” according to Reuters. In addition, Trump declared in Truth Social that Mexico has agreed to immediately eliminate its non -tariff commercial barriers.

However, the United States would continue to impose a 50% tariff on Mexican steel, aluminum and copper. A 25% tariff will remain on Mexican cars and non-compliant goods with the T-MEC. These tariffs are related to measures linked to the fentanyl crisis in the US.

President Trump imposed tallest tariff fees on US business partners who will enter into force on August 1. On Thursday, Trump signed an executive order by imposing tariffs that range between 10% and 41% on US imports of dozens of foreign countries and locations, including Canada, India and Taiwan, who failed to comply with the period of commercial agreements, according to Reuters.

The USD/MXN torque could be appreciated since the US dollar (USD) could recover land, since the recent report of the US PERSONAL CONSUMPTION PRICE INDEX (PCE) suggested that price pressures would increase in the second half of 2025 and delay the interest rate cuts of the Federal Reserve of the USA (FED) until at least October. The operators expect non -agricultural payroll (NFP) of the US, which will be published later in the American session, which is expected to remain in positive territory in July.

Mexican peso – frequent questions


The Mexican weight (MXN) is the most commercialized currency among its Latin American peers. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even remittance levels sent by Mexicans living abroad, particularly in the United States. Geopolitical trends can also affect MXN: for example, the Nearshoring process (or the decision of some companies to relocate the manufacturing capacity and supply chains closer to their countries of origin) is also considered a catalyst for the Mexican currency, since the country is considered a key manufacturing center in the American continent. Another catalyst for MXN is oil prices, since Mexico is a key exporter of the raw material.


The main objective of the Central Bank of Mexico, also known as Banxico, is to maintain inflation at low and stable levels (in or close to its 3%target, the midpoint of a tolerance band between 2%and 4%). To do this, the bank establishes an adequate level of interest rates. When inflation is too high, Banxico will try to control it by raising interest rates, which makes the indebtedness of homes and companies more cooling, thus cooling the demand and the economy in general. The highest interest rates are generally positive for Mexican weight (MXN), since they lead to higher yields, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the MXN.


The publication of macroeconomic data is key to evaluating the state of the economy and can have an impact on the valuation of the Mexican weight (MXN). A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only attracts more foreign investment, but it can encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this fortress is accompanied by high inflation. However, if the economic data is weak, the MXN is likely to depreciate.


As an emerging market currency, the Mexican weight (MXN) tends to rise for periods of risk, or when investors perceive that the general market risks are low and, therefore, are eager to participate in investments that carry a higher risk. On the contrary, the MXN tends to weaken at times of market turbulence or economic uncertainty, since investors tend to sell higher risk assets and flee to the most stable safe shelters.

Source: Fx Street

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