USD/MXN Price News: Mexican Peso ignores downbeat options market signals to eye weekly gain
27.07.2023, 23:48

USD/MXN Price News: Mexican Peso ignores downbeat options market signals to eye weekly gain

USD/MXN fades the corrective bounce off the one-week low marked the previous day as it retreats to 16.87 amid the early hours of Friday’s Asian session. In doing so, the Mexican Peso (MXN) pair braces for the weekly loss while reversing the previous week’s corrective bounce off the lowest levels since December 2015.

It’s worth noting that the pair’s recovery on Thursday and the options market bias take clues from a strong rally in the US Dollar prices backed by the recent US data. However, the comparatively upbeat Mexican fundamentals favor the MXN.

That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, reverse the previous day’s downbeat print by posting the 0.027 figure by the end of Thursday’s North American trading session.

With this, the options market figures flag the hopes of witnessing a corrective bounce in the USD/MXN price as the weekly RR braces for the second consecutive positive print with the latest number being 0.080.

However, the US Core Personal Consumption Expenditure (PCE) Price Index for June, expected 4.2% YoY versus 4.6% prior, also known as the Fed’s preferred inflation gauge, is scheduled for publishing on Friday and can offer a volatile day and move the USD/MXN pair.

Also read: USD/MXN Price Analysis: Bears have the upper hand near 200-hour SMA/61.8% Fibo. confluence

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