Mexican Peso stays pressured around 17.00 amid mixed options market signals

USD/MXN prints mild gains around 17.00, after posting a weekly loss, as the Mexican Peso struggles for clear directions during early Monday in Europe.

That said, the Mexican Peso (MXN) pair dropped in the last week despite the broad US Dollar’s strength as market players sensed more odds of the Fed’s policy pivot than the Banxico.

Even so, the mixed options market signals jostle with the risk-off mood to prod the USD/MXN traders of late.

Also read: S&P500 Futures prod one-month low, yields grind higher as China fuels economic fears

As per the latest options market data from Reuters, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, dropped in the last three consecutive days to -0.1000 by the end of Friday North American trading session.

However, the weekly RR appears the contrary as the options market gauge printed the four-week uptrend, despite the disappointing daily figures, to 0.040 at the latest.

Elsewhere, the US Dollar Index (DXY) renews a five-week high near 103.00 amid firmer US Treasury bond yields and the risk-off mood.

Also read: US Dollar Index: DXY traces sturdy yields to print five-week high near 103.00 ahead of Fed Minutes