Mexican Peso Weakens on Manufacturing Contraction and US Election Uncertainty

Key Facts

The USD/MXN pair rose by over 1.40% to reach 18.84 as investor caution intensified. FXStreet reported that the weakening of the Mexican Peso was driven by geopolitical uncertainty surrounding the US midterm elections and disappointing domestic economic data.

Mexico's manufacturing activity fell into contraction territory with the PMI hitting 49.5 in October. This decline in industrial health coincides with market focus on the future composition of the US Congress, while domestic Business Confidence was recorded at 48.4 on November 3, 2026.

The Bank of Mexico is scheduled to announce its Interest Rate Decision on November 5, 2026, with forecasts suggesting rates will remain at 6.5%. Additionally, Mexican Consumer Confidence data is due for release tomorrow, November 4, 2026.