Mexican Peso recoils after misfire in Mexican Retail Sales

• The Mexican Peso shed 1.8% against the Greenback on Tuesday.
• Mexico saw a much steeper contraction in Retail Sales than expected.
• Markets are looking for signs of Fedspeak ahead of Jackson Hole.

The Mexican Peso (MXN) took a step back against the US Dollar on Tuesday after a miss in Mexican Retail Sales. Markets continue to tilt towards the Jackson Hole Economic Symposium later this week, looking for signs of a Federal Reserve (Fed) rate cut in September.

Daily digest market movers: Mexico Retail Sales sputter sends Peso lower

• Mexico reported a wide miss in Retail Sales, which contracted twice as much as expected in June.
• Mexican Retail Sales contracted 3.9% for the year ended in June, far below the forecast -1.8% and tumbling back from the previous month’s 0.3% uptick.
• MoM Mexico Retail Sales also fell back 0.5%, underperforming the previous print of 0.1%.
• Fedspeak will have a pronounced impact on market flows in the coming days as investors gear up for the Jackson Hole kickoff on Thursday.
• Global markets are broadly expecting the Fed to jumpstart a rate cutting cycle with at least a quarter-point rate trim on September 18.

Mexican Peso price forecast: USD/MXN jumps on Peso weakness

USD/MXN chalked in a 1.8% upswing on Tuesday as the Peso stumbles against the Greenback. Despite a broad-market pullback in the US Dollar Index, USD/MMXN is still finding higher ground and testing beyond the 19.00 handle.

With the pair poised for a near-term upswing, bidders are looking to extend topside momentum and mark in another higher lower on daily candlesticks.

USD/MXN daily chart