USD/MXN Forecast: Mexican peso stays neutral as uncertainty persists

USD/MXN remains range-bound despite a modest drop of more than 0.8% over recent sessions that has slightly favored the Mexican peso. The article argues the pair is still stuck in a neutral, indecisive phase because competing macro forces are offsetting each other: Mexico’s relatively high yields and positive rate differential support the peso, while renewed North American tariff risk and uncertainty over future Fed and Banxico policy keep traders cautious. Technically, the pair is still trapped in a broad sideways range, with momentum indicators near neutral. Key levels to watch are 17.71 resistance, 17.39 as a pivotal barrier, and 17.10 support. Near-term direction is likely to stay muted until new economic data or policy signals shift expectations.