Mexican Peso reverses uptrend on the short-term horizon

• The Mexican Peso has reversed its entrenched uptrend in the short term. 
• The move comes after the IMF revised down their economic growth forecasts for Mexico. 
• USD/MXN is rising after comments from Fed Chair Jerome Powell suggest interest-rate cuts could be further delayed. 

The Mexican Peso (MXN) is trending lower in the majority of its most heavily traded pairs on Wednesday. This is due to a combination of factors, including the decision by the International Monetary Fund (IMF) to downgrade its economic growth forecasts for Mexico in 2024-2025, as well as fading Oil prices – a key export for the country.  

The impact of stubbornly high inflation in the US and recent remarks from the Chairman of the Federal Reserve (Fed), Jerome Powell, that suggest the Fed may not cut interest rates until September (from previous expectations of June), were further factors posited as influencing the Mexican Peso’s reversal in fortunes.