# Mexican Peso finds relief in Fed pause bets, but carry risks linger

> The peso rose to 18.41 per dollar on October 19 as traders priced a Fed hold at the October meeting. Speculation of a December hike and at least two hikes in 2027 limited gains, and the US-Mexico trade deal stalled.

- Date: 2026-10-19 · published 2026-10-19T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/17271-mexican-peso-finds-relief-in-fed-pause-bets-but-carry-risks-linger
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Expectations of a Fed pause reduce dollar strength, a mild support for dollar-priced US commodity exports, though the stalled trade deal adds uncertainty for Mexico's import demand.

## Read by commodity

- DXY: bearish ▼
- USDMXN: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2019-02-20 | [January FOMC minutes: Little risk in pause](https://feedsoft.ai/events/60767-january-fomc-minutes-little-risk-in-pause.md) | -0.5% | -0.4% |
| DXY | 2023-08-30 | [Asian currencies wobble, stocks up on Fed pause bets - Markets - Business Recorder](https://feedsoft.ai/events/34843-asian-currencies-wobble-stocks-up-on-fed-pause-bets-markets-business-recorder.md) | +1.3% | +2.3% |
| DXY | 2020-09-30 | [Latam FX rise as dollar steadies; Mexican peso shines](https://feedsoft.ai/events/51308-latam-fx-rise-as-dollar-steadies-mexican-peso-shines.md) | -1.1% | -1.5% |
| DXY | 2025-12-11 | [Latin American assets rally on Fed cut, Brazil's cenbank maintains pause \| Reuters](https://feedsoft.ai/events/21716-latin-american-assets-rally-on-fed-cut-brazil-s-cenbank-maintains-pause-reuters.md) | -0.4% | -0.4% |
| DXY | 2018-02-22 | [Mexico peso firms on rate hike bets, weaker U.S. dollar](https://feedsoft.ai/events/66711-mexico-peso-firms-on-rate-hike-bets-weaker-u-s-dollar.md) | +0.5% | -0.1% |

## Sources

- fxstreet.com: https://www.fxstreet.com/news/mexican-peso-finds-relief-in-fed-pause-bets-but-carry-risks-linger-202610191909

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.