• Mexican Peso weakens close to 0.2% after disappointing US job figures and service sector contraction.
• Mexico's Gross Fixed Investment shows mixed results; Private Consumer Spending continues to grow, signaling economic strength.
• Bank of Mexico's latest poll anticipates inflation at 4.2% by 2024, with the Mexican economy expected to grow by 2.25%.

The Mexican Peso failed to hold to earlier gains versus the US Dollar on Friday after a softer-than-expected employment report in the United States (US) reignited speculation that the Federal Reserve (Fed) might lower interest rates as the jobs market weakened. Furthermore, US business activity in the services sector shows signs of contraction, which bolstered the Greenback to the detriment of the Mexican currency. The USD/MXN trades at 17.01, up by 0.20%.

Mexico’s economic schedule revealed that Gross Fixed Investment trailed in the twelve months to February data but increased in monthly figures. Further data revealed that February’s Private Consumer Spending grew in monthly and yearly figures, an indication of the economy's robustness.

Meanwhile, the Bank of Mexico (Banxico) April poll showed that private economists estimate inflation to end at 4.2% in 2024, underlying prices at 4.1%, and the economy to grow by 2.25%. Regarding the USD/MXN, analysts revised their projections downward from 18.10 to 17.

Across the border, the US Bureau of Labor Statistics (BLS) revealed that Nonfarm Payrolls in April missed the estimates and trailed the latest reading, underscoring the jobs market is cooling.

Other data revealed by the Institute for Supply Management (ISM) showed that business activity contracted for the first time since December 2022