# Historic fall in Mexico's Q2 GDP weighs on peso - Markets - Business Recorder

> Mexico's economy contracted 17.1% in April to June from the prior quarter in seasonally adjusted terms, the sharpest contraction on record, and 18.7% year on year. The peso slipped as much as 0.3% while regional currencies weakened as the dollar firmed ahead of Jerome Powell's Jackson Hole speech.

- Date: 2020-08-26 · published 2020-08-26T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/51831-historic-fall-in-mexico-s-q2-gdp-weighs-on-peso-markets-business-recorder
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A deep recession in Mexico, a major feed importer, weighs on demand for grain and meal, and a weaker peso raises the local cost of imports. Dollar strength ahead of the Fed event adds pressure on dollar-denominated commodity prices.

## Read by commodity

- DXY: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2021-06-17 | [South Africa's rand hits one-month low on hawkish Fed, stocks fall - Markets - Business Recorder](https://feedsoft.ai/events/46878-south-africa-s-rand-hits-one-month-low-on-hawkish-fed-stocks-fall-markets.md) | +1.1% | +1.7% |
| DXY | 2022-06-15 | [Corn, wheat, soya fall amid decline in financial markets - Markets - Business Recorder](https://feedsoft.ai/events/12701-corn-wheat-soya-fall-amid-decline-in-financial-markets-markets-business-recorder.md) | -0.9% | +2.0% |
| DXY | 2020-08-21 | [Euro sinks, yuan rallies in Europe - Markets - Business Recorder](https://feedsoft.ai/events/51830-euro-sinks-yuan-rallies-in-europe-markets-business-recorder.md) | -0.1% | -1.3% |
| DXY | 2021-11-26 | [India rupee sees worst week in seven on new variant - Markets - Business Recorder](https://feedsoft.ai/events/44318-india-rupee-sees-worst-week-in-seven-on-new-variant-markets-business-recorder.md) | -0.2% | -0.6% |
| DXY | 2026-06-18 | [China's yuan weakens to one-week low on strong dollar, Fed hike bets weigh - Markets - Business Recorder](https://feedsoft.ai/events/8413-china-s-yuan-weakens-to-one-week-low-on-strong-dollar-fed-hike-bets-weigh.md) | +1.4% | +1.0% |

## Sources

- brecorder.com: https://www.brecorder.com/news/40014628

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