(MENAFN- Your Mind Media ) “The Mexican peso began the session on October 15 with a slight appreciation against the U.S. dollar, trading at $18.48 per greenback. The advance was supported by the doll’r’s weakness and expectations of a new interest rate cut by the Federal Reserve, after Jerome Powell warned of signs of a slowdown in the U.S. labor market.

Analysts highlight that the peso’s positive bias could persist in the short term, with a technical range defined between $18.40 as support and $18.60 as resistance. This band reflects the balance between investor confidence in the Mexican currency and the persistent volatility stemming from external factors.

The doll’r’s pullback responds, in part, to reduced risk aversion in international markets. Concerns over U.S.-China trade tensions have eased slightly, though the threat of new tariffs remains, potentially altering capital flows toward emerging economies once again.

Globally, the outlook is also shaped by the partial shutdown of the U.S. government, which has delayed the release of key economic data. This lack of information creates some opacity in investment decisions, while increasing the relevance of other indicators such as corporate earnings reports on Wall Street.

On this front, the quarterly earnings season has positively surprised investors, with profits exceeding expectations across several sectors. These results have helped reduce risk aversion and supported the recovery of emerging market assets, including the Mexican peso.

The market, however, remains delicately balanced. Investors are closely watching for new signals on Fed policy, as well as the release of the Beige Book, which could provide greater clarity on consumption and employment trends in the U.S. economy. Any indication of a more accommodative stance could reinforce the peso’s appreciation trend.

Mexico, for its part, continues to benefit from the relative attractiveness of its interest rates and its internal macroeconomic stability. However, the pe’o’s sensitivity to external factors, particularly U.S. trade and monetary policy, remains high, forcing market participants to maintain a cautious stance.

In conclusion, the Mexican peso is showing resilience and taking advantage of the dollar’s weakness, supported by lower risk aversion and expectations of a more flexible Fed. Nonetheless, volatility persists due to factors such as the trade war, the U.S. government shutdown, and uncertainty over monetary policy. In this context, the pe’o’s performance will depend on inves’ors’ ability to balance caution with the opportunities the Mexican currency presents in the short term."

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