USD/MXN gains ground on speculation of the Fed’s extending policy tightening. Banxico is expected to reduce its interest rate to 11.0% from 11.25%. US Dollar strengthens on improved US Treasury yields. Traders are awaiting Private Spending data on Tuesday and Retail Sales figures on Wednesday from Mexico. Furthermore, attention is on the Bank of Mexico's interest rate decision on Friday, with expectations of a 25 basis points reduction.
Despite Mexico's Industrial Production surging over twelve months, surpassing December's stagnant performance, this could bolster the hawkish stance of Banxico. Meanwhile, the US Dollar strengthens to near 103.90, driven by improved US Treasury yields at 4.73% and 4.32% for 2-year and 10-year US bond coupons, respectively. Investors eagerly await the interest rate decision from the US Federal Reserve , expected to be announced on Wednesday.