The Mexican Peso (MXN) is trading within a narrow range, awaiting the release of key economic data and the Bank of Mexico’s (Banxico) monetary policy decision. The peso has been supported by a stronger US Dollar (USD) and positive developments in the United States.

Economic Data

The Mexican Retail Sales data for July came in below expectations, while the Balance of Trade data showed a surplus. Investors will also focus on the September inflation data and the Banxico policy meeting.

Interest Rate Expectations

The Banxico is expected to cut interest rates by 25 basis points (bps) at its upcoming meeting. However, the decision will depend on inflation data and other economic factors.

Technical Analysis

The USD/MXN pair is consolidating near the base of a long-term rising channel. A break above 19.53 could confirm a short-term uptrend.