Mexican Peso strengthens to 16.92 after hitting four-week low of 17.13. US GDP data unchanged; higher unemployment claims suggest economic slowdown, weakening the US Dollar. Banxico revises inflation forecasts upward, hinting at potential split decision on rate cuts in June. The Mexican Peso erased some of its earlier losses against the US Dollar and rose some 0.20% after GDP data from the United States showed the economy is slowing.
Initial Jobless Claims for the week ending May 25 rose by 219K, exceeding the consensus 218K and the previous 216K reading. Despite that, fed funds rate futures estimated 27 basis points of easing toward the end of the year. Technical analysis: Mexican Peso appreciates as USD/MXN tumbles back below 17.00 The USD/MXN downtrend remains in play, although buyers gathered steam and pushed the exchange rate toward 17.13, shy of testing the 200-day Simple Moving Average at 17.14.