“Market sentiment remains upbeat, a positive sign for the Mexican peso, which is considered a risk-sensitive currency. May inflation in the US showed signs of cooling, with headline inflation falling 0.8% from 4.9% in April to 4% yoy. Also, excluding volatile items such as food and energy, core inflation eased 0.2% to 5.3% yoy, in line with estimates,” OctaFX analysts said.
OctaFX analysts said that the level below the floor of 17.20 pesos would send the peso/dollar plummeting towards the 2016 low of 17.05 pesos per dollar before challenging the 17.00 barrier.