• The Mexican Peso trades mixed in key pairs after extending its recovery on Thursday. 
• The Fed’s decision to cut interest rates in the US weighed on the US Dollar whilst uncertainty of tariffs is still a threat to the Peso.
• USD/MXN finds support at the 50-day SMA and remains in a broader uptrend.  

The Mexican Peso (MXN) trades mixed in its key pairs on Friday during the European session after rising up and meeting resistance near the top of a falling channel it has been steadily declining in since Mexico’s June elections. 

Whilst the Peso initially weakened on Wednesday because of President elect Donald Trump’s victory in the US presidential election, it quickly bounced back. MXN's initial depreciation came on the back of concerns about the impact of Trump’s tariff-heavy agenda on Mexican exports to the US. 

Pressure on the Peso eased, however, after the release of higher-than-expected Mexican headline inflation data for October suggested the Bank of Mexico (Banxico) might not be as aggressive in cutting interest rates as had previously been expected. This came to the Peso’s aid since elevated interest rates tend to attract greater inflows of foreign capital.