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Peso Steadies as Mexico Markets Rebound After Venezuela Shock

Attention now shifts to upcoming U.S. jobs data as traders seek the next policy cue from Banxico.

Overview

  • The peso closed at 17.9063 per dollar, a 0.04% improvement from Friday, after trading between 17.8719 and 18.0369.
  • Early weakness was linked to reports of a U.S. operation in Venezuela and President Donald Trump’s threats regarding Colombia and cartel targets in Mexico, but losses were erased.
  • President Claudia Sheinbaum said she does not believe the United States is seriously considering intervention in Mexico.
  • Mexico’s S&P/BMV IPC rose 1.38% to 65,026.95, led by miners, while 10- and 20-year government bond yields eased to 8.90% and 9.46%, respectively.
  • Traders are positioning for U.S. nonfarm payrolls and Banxico’s meeting minutes later this week, with the peso still supported by Mexico’s rate advantage and a softer DXY.