- The USD/MXN is recovered up to about 20.50 while the Mexican weight yields some profits promoted by the delay in the imposition of tariffs to Mexico by the US president, Trump.
- The USD’s safe refuge appeal decreases as investors expect Trump’s tariff agenda to be less fearsome than anticipated.
- Investors expect the US Jolts employment offers data, which will demonstrate the current state of labor demand.
The USD/MXN pair bounces up to about $ 20.50 at the European session on Tuesday after plumping from the maximum of Monday of 21.29. The torque wins as the Mexican weight yields some profits that were inspired by the decision of the president of the United States (USA), Donald Trump, to postpone his orders to impose 25% tariffs on Mexico and Canada.
President Trump delayed his tariff plans to Mexico after he agreed to support the US to restrict the passage of undocumented drugs and immigrants to his economy. To avoid tariffs, Mexican president Claudia Sheinbaum took the matter seriously and supported Trump’s agenda to harden immigration controls by sending 10,000 troops to the border. The event also froze the risks of economic damage to the Mexican economy for now.
Meanwhile, investors hope that Trump’s tariff agend ). The USD faces a strong sale pressure at each attempted recovery since Monday, with the US dollar index (DXY), cautiously quoting around 108.40.
Looking ahead, the main trigger for the US dollar will be the data of US Jolts employment offers for December, which will be published at 15:00. Economic data will show the current state of labor demand. Economists expect employers to publish 8 million new jobs, slightly below the almost 8.10 million in November.
Investors will pay close attention to employment offers, as they will influence market expectations about the perspectives of the monetary policy of the Federal Reserve (Fed).
Mexican weight FAQS
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 policy of the Central Bank of the country, the amount of foreign investment in the country and even the 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 currency Mexican, 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 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

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.