Update from North America

Buck and other safe havens rise, MXN plummets

2 min read

The U.S. Dollar is trading in familiar ranges with a favorable tilt against most Major peers with the Japanese Yen and Swiss Franc being the exceptions.

Risk-off sentiment has taken a hold of global markets even as some earnings reports impress while a possible merger between Tesla and SpaceX makes investors curious about the potential opportunities if it materialized. Safe-haven assets are being preferred, such as the JPY and CHF, as traders and economists worry about ongoing inflationary pressures deteriorating projections for economic growth as expenses make things impractical. The latest surge in oil prices is concerning as we have reached the highest levels for world crude since May.

There was a bit of positivity out of the Middle East with reports of rising oil flows out of the region and talk about productive discussions to ease tensions as well as try minimizing further physical damage. There are movements in FX, but they have been limited without much in terms of data points and caution when it comes to trading activity. There is a lot more to watch out for in the upcoming week with a mix of central bank action and key economic indicators gauging Gross Domestic Product growth and inflation.

What to Watch This Week…

The complete Economic Calendar can be found here.

MXN

The Mexican Peso hit its lowest value against the U.S. Dollar since August 2025 as a combo of negative items influenced its crash of 1.8% thus far this week. On the free trade front, disagreement between Mexican and American envoys negotiating the USMCA pact was one of the factors. Tariffs on steel and aluminum seem to be the biggest cause for friction.

As far as monetary policy is concerned, major banks are establishing in their conclusions that the weakening of the Mexican Peso is “by design, not accident.” Wells Fargo and others argue that Banxico, the central bank is looking to cut interest rates to aid the depreciation and thus improve the market for exporters as well as the tourism industry. A stagnant economy seems to be the focus for officials who are willing to not join the Fed or others in tightening conditions. Banxico will meet on November 5th.