In December, Mexico’s unemployment rate fell from 2.7% to 2.6%. This shows an improvement in job conditions and suggests the economy is recovering. The markets reacted differently across various sectors. These changes depend on overall sentiment and outside influences. Key economic indicators, like the unemployment rate, can affect larger trends such as currency values and commodity prices.

Why Employment Statistics Matter

As the economy evolves, it’s essential to stay updated on employment statistics. Understanding these numbers gives us insights for market analysis. FXStreet is committed to providing timely updates on these developments for its readers. The decrease in the unemployment rate to 2.6% shows that the labor market remains tight, highlighting ongoing economic strength as we enter 2026. This data suggests that the resilience of the domestic economy might be underestimated, backing the case for a stronger Mexican Peso soon. We should look at positioning for further Peso gains against the dollar, potentially through options or futures contracts. This outlook aligns with the strong “super peso” trend we saw in 2024 and 2025, fueled by high interest rates and strong foreign investments. The peso’s strength in 2023, where it rose over 13% against the dollar, has laid the foundation for continued performance. This strong jobs report may lead Banxico, Mexico’s central bank, to be cautious about reducing interest rates. Although there was some easing in 2025, the central bank might pause cuts to avoid overheating the economy, making the interest rate difference with the U.S. appealing to investors. This difference remained over 500 basis points for most of last year, driving currency traders.

Effect of the Nearshoring Boom

The economic strength is not just temporary; it’s also structural due to the ongoing nearshoring boom that picked up after a record $36 billion in foreign direct investment in 2023. This trend continues to bring capital into Mexico, supporting both the currency and local asset prices. As traders, we can seek derivatives related to Mexican industries and manufacturing to take advantage of this. Bullish strategies on the Mexican IPC stock index, such as buying call options, seem promising. At the same time, selling out-of-the-money put options on USD/MXN futures could generate income while betting that the peso won’t weaken significantly. However, we should stay alert to any sudden changes in U.S. Federal Reserve policy, as a more aggressive Fed might disrupt this optimistic outlook. Create your live VT Markets account and start trading now.

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