MEXICAN PESO SOARS TO HIGHEST VALUE IN OVER EIGHT YEARS AGAINST US DOLLAR

• Mexican Peso skyrockets sharply toward 16.53 against the US Dollar as USD/MXN contracts 0.65%.
• Mexico’s narrowed trade deficit and the tighter labor market in Mexico contributed to Peso's ascent, surpassing expectations.
• Attention turns to Federal Reserve Governor Christopher Waller's comments on Wednesday.

The Mexican Peso rallied to a new eight-year high against the US Dollar with the USD/MXN pair breaching last year’s low of 16.62, extending its losses to the 16.50s. Thin liquidity conditions amid a shortened week in the observance of Good Friday strengthened the Mexican currency, which hit 16.53. At the time of writing, the exotic pair trades at 16.53, down 0.64%.

Mexico’s economic schedule revealed that the Balance of Trade clocked a narrower deficit than January’s figures, but it exceeded the consensus. In the meantime, the labor market remains tight as the Unemployment Rate was below the previous month’s figures and estimates. The data was revealed before Wall Street opened on Wednesday, yet the USD/MXN dived below 16.60 at around 14:00 GMT.

Across the border, a scarce economic docket will feature comments from Federal Reserve (Fed) Governor Christopher Waller, one of the remaining “hawks” in the central bank’s Federal Open Market Committee (FOMC).