USD/MXN stays defensive around 17.13, despite recently picking up bids amid the early hours of Tuesday’s Asian session. It’s worth noting that the Mexican Peso (MXN) pair dropped in the last two consecutive days to reverse the mid-June recovery from the lowest levels since 2016.

In doing so, the Mexican Peso (MXN) pair justifies the options market signals as traders brace for the US Durable Goods Orders for May and Conference Board’s (CB) Consumer Confidence data.

That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, drops for the fourth consecutive day to -0.043 by the end of Monday’s North American trading session. On the same line, the weekly RR has been down for the last five consecutive weeks.

The Mexican Peso pair’s latest consolidation might have also taken clues from the pre-event consolidation, as well as the market’s latest risk-off mood that underpinned the US Dollar’s haven demand.

Also read: USD/MXN stumbles further amidst strong Mexican Peso, Fed Rate cut bets cool off