Mexican Peso Strengthens Against US Dollar on Memorial Day as Traders Await Key US Data

Mexican Peso Bulls Dominate the US Dollar on Memorial Day

The Mexican Peso (MXN) is gaining ground against the US Dollar (USD) on Monday, with the USD/MXN pair trading near 19.19, down by 0.33% at the time of writing—approaching year-to-date lows.

Despite US markets being closed in observance of Memorial Day, the Peso remains strong. Low trading volume and thin liquidity are influencing price movements, but broader concerns over the US fiscal outlook and former President Donald Trump’s tariff rhetoric continue to weigh on the Dollar.

Traders are closely monitoring US Treasury yields and upcoming comments from policymakers, but attention is also shifting to key economic data releases later this week.

The US Dollar's performance—and, by extension, the USD/MXN exchange rate—will likely be shaped by Wednesday’s release of the Federal Reserve meeting minutes and Friday’s reports on core Personal Consumption Expenditures (PCE) inflation and the University of Michigan Consumer Sentiment Index. These indicators will be critical in assessing inflation trends and consumer confidence, which could impact expectations for future Fed interest rate decisions.