The Mexican peso has seen an appreciation against the dollar at the beginning of this week, a response to the latest inflation figures released by the Inegi, which showed an increase in January. This development comes as operators in the financial sector carefully digest the recent pause in interest rate cuts by the Bank of Mexico, a necessary measure to assess the ongoing rise in prices and ensure economic stability. Current data indicates that the peso has appreciated by 0.31 percent compared to the previous trading session.

On the geopolitical front, the situation complicates somewhat due to humanitarian diplomacy towards Cuba, with Mexico sending over 800 tons of supplies from Veracruz. While this move reflects a commitment to sovereignty and international cooperative efforts, it coincides with a period of heightened tension in U.S.-Mexico relations, particularly under the administration of Donald Trump. The U.S. has begun to label the USMCA (T-MEC) as "irrelevant" as it increases pressure to return automotive production to the U.S., which could have broader implications for trade relations between the two countries.

Overall, the current strength of the peso could be interpreted as a positive sign for the Mexican economy in the short term, especially in light of external pressures and domestic inflation concerns. However, the lasting impact of geopolitical tensions and trade discussions with the U.S. may overshadow this progress, highlighting the need for careful monitoring of both economic indicators and diplomatic exchanges as they unfold in the coming weeks.