• USD/MXN falls close to 0.50% amid declining US bond yields, on US recession fears.
• Despite an unchanged interest rate from the Mexican central bank, the Mexican Peso teeters towards year-to-date lows.
• USD/MXN is downward biased, potentially testing the current YTD low and the 2016 yearly low, suggesting bearish market sentiment.

USD/MXN drops close to 0.50% as the week begins, undermined by falling US bond yields, courtesy of mixed data, even though last week’s job report in the United States (US) cemented the case for one more rate hike by the US Federal Reserve (Fed). The Mexican Peso (MXN) threatens to fall toward new year-to-date (YTD) lows, albeit the central bank of Mexico held rates unchanged at its last meeting. The USD/MXN is trading at 17.4629 after hitting a high of 17.5971.