The Mexican Peso has strengthened against the US Dollar, with the market showing cautious optimism. While concerns over the proposed judicial reforms continue to weigh on the Peso, positive news regarding international trade and a potential easing of tensions with the United States have provided some support.

The US Dollar has weakened, with the DXY index falling below the 101.00 level. The market’s focus remains on the Federal Reserve’s monetary policy outlook, with expectations for interest rate cuts in September increasing.

Technical Outlook

The USD/MXN pair has shown a short-term pullback within a broader uptrend. A break above the 19.80 level could signal a continuation of the upward trend, with potential targets at the channel highs. However, the RSI has entered neutral territory, indicating a potential for a short-term correction.