(MENAFN- The Rio Times) Mexico's markets ended the week sending mixed but ultimately reassuring signals: a softer peso, a cautious equity grind higher and no sign of capital flight.

The dollar–peso pair hovered around 18.48 in early Saturday dealing, extending a four-session climb that has chipped away at this year's“super-peso” narrative.

The move reflects a simple mix: a firmer dollar and a cooling Mexican economy. The Dollar Index is parked near the 100 mark after a week of resilient U.S. data and only gradual repricing of future Fed cuts, giving the greenback a steady tailwind against most emerging currencies.

At home, third-quarter GDP showed a slight quarter-on-quarter contraction and recent activity indices confirm a broad loss of momentum in manufacturing and construction.

Banxico has already cut its policy rate 11 meetings in a row to 7.25%, reducing Mexico's once-extraordinary carry advantage.

Yet this remains an orthodox, rules-based easing cycle: inflation is back inside target, and the government has renewed a US$24 billion IMF Flexible Credit Line as a precaution, underlining Mexico's reputation as one of the more disciplined macro stories in the region.

Technically, USD/MXN still trades well below its falling 200-day moving average, suggesting the longer-term downtrend in the pair is intact even as the four-hour chart shows a short-term upswing with momentum and RSI in overbought territory.




Mexico's Peso Wobbles While Equities Signal Calm In Slowing Economy
In plain language, the peso looks vulnerable to more weakness near term, but not to a structural break.

Equities told a calmer story. The S&P/BMV IPC rose about 0.4% to roughly 61,900, helped by gains in industrials and consumer names.

The day's top five winners were Grupo Televisa, Grupo Aeroportuario del Pacífico, Grupo Financiero Inbursa, Regional and micro-lender Gentera.

Biggest losers were chemical group Orbia, conglomerate Alfa, food giant Bimbo, lender Banorte and holding company Grupo Carso.

Volumes on Mexico's main ETF were close to average and flows largely stable, the signature of investors rotating within a market they still trust.

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