• The Mexican Peso is moderating higher on Thursday as the global risk appetite supports emerging market currencies. 
• The Peso weakened across the board on Wednesday after the Fed announced a mega 0.50% rate cut. 
• USD/MXN is consolidating at the base of a rising channel and the 50-day SMA. 

The Mexican Peso (MXN) edges higher in its most heavily-traded pairs during the European session on Thursday as global stocks rally amid an upbeat tone that is generally positive for emerging market FX. 

On Wednesday, however, the Peso lost ground following the US Federal Reserve’s (Fed) decision to cut interest rates by a larger 0.50% at its meeting. MXN weakened by an average of 1.1% against the US Dollar (USD), Euro (EUR), and Pound Sterling (GBP) on the day.  

The Mexican Peso was probably not helped by comments from Victor Manuel Herrera, President of the National Economic Research Committee at Instituto Mexicano de Ejecutivos de Finanzas (IMEF) on Wednesday. Herrera said that the Mexican government’s controversial judicial reforms and the scrapping of independent industry regulatory bodies might harm the Mexican economy by reducing its attractiveness to foreign investors, especially from the US.