MEXICAN PESO CLIMBS AFTER STRONG ECONOMIC ACTIVITY REPORT

• Mexican Peso gains 0.55%, trading at 17.92, after better-than-expected Economic Activity data.
• INEGI reports strong economic activity for May, offsetting slow retail sales growth.
• US political developments with Biden's withdrawal and endorsement of Harris impact market sentiment, favoring high-beta currencies.

The Mexican Peso recovered on Monday after ending the week with more than 2.30% losses. Mexico’s economic data was mixed, though the Economic Activity indicator, which measures growth, was better than expected and bolstered the Mexican currency. Therefore, the USD/MXN drops below the 18.00 figure and trades with gains of 0.55% at around 17.92.

The Mexican National Statistics Agency (INEGI) revealed that economic activity in May exceeded estimates and April's data on a monthly and annual basis. This helped the Peso, which remains appreciating against the US Dollar. Contrarily, Retail Sales for the same period increased slowly, hinting that Government infrastructure projects drive the economy.

Across the border, breaking news emerged on Sunday that US President Joe Biden dropped from the Presidential race and endorsed the current Vice President Kamala Harris to obtain the ticket of the Democrats and compete against former President Donald Trump.