USD/MXN conquers the 18.000 figure ahead of Fed’s Powell speech before US Congress


  • USD/MXN reclaims 18.0000 post US factory data, ahead of Fed’s Powell speech.
  • The US Dollar remained offered, though it was no excuse for the USD/MXN to register gains.
  • USD/MXN Price Analysis: Downward biased, but it would need a daily close below $18.00 to expose 6-year lows.

The USD/MXN is recovering some ground on Monday after falling to 5-year lows below $18.00, at 17.9409, and climbing above the 18.0000 figure amidst overall US Dollar (USD) weakness. The USD/MXN is exchanging hands at 18.0022 and gains 0.27%.

USD/MXN reclaims $18.00 as the pair consolidates

Wall Street is set to finish Monday’s session with gains. The US Federal Reserve Chair Jerome Powell will take the stand in the United States (US) Congress on March 7 and 8. He’s expected to deliver a speech reiterating the Fed’s commitment to taking inflation and holding higher rates for a certain time. Nevertheless, analysts expect Chair Powell to be vague if asked where the Federal Funds Rate (FFR) would peak.

In the meantime, data revealed during the day showed that US Factory Orders plunged less than estimates of -1.8%; it came at -1.6%. The US Commerce Department report indicated an increase in the shipment and production of goods, which ended a two-month consecutive decline trend.

The US Dollar Index (DXY) a gauge for the buck’s value vs. a basket of six currencies, continued its downtrend last week by -0.19%, at 104.325, capping the USD/MXN gains during the day.

On the Mexican front, data from the National Statistics Agency, known as INEGI, showed that automotive production and exports climbed more than expected a year ago. Additionally, Tesla’s 10 billion US dollars investment in Mexico keeps the Mexican Peso (MXN) afloat.

USD/MXN Technical Analysis

The USD/MXN daily chart portrays the MXN would continue to strengthen vs. the US Dollar. Nevertheless, it could consolidate as traders assess the USD/MXN current exchange rate. An extension below $17.94 could witness the USD/MXN reaching the July 2017 low of 17.4498. A break below will expose the April 2016 low of 17.0509. Conversely, if the USD/MXN reclaims 18.1208, that would open the door to testing the 20-day EMA at 18.3757.

What to watch?

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD extends recovery toward 1.0750

EUR/USD extends recovery toward 1.0750

EUR/USD preserves its recovery momentum and edges higher toward 1.0750 on Monday, after closing the previous week in negative territory. The improving risk mood makes it difficult for the US Dollar to find demand and helps the pair stretch higher.

EUR/USD News

GBP/USD rises toward 1.2700 on renewed USD weakness

GBP/USD rises toward 1.2700 on renewed USD weakness

GBP/USD trades in the green near 1.2700 in the second half of the day on Monday. After outperforming its rivals on upbeat PMI data on Friday, the US Dollar stays on the back foot amid a positive shift in risk sentiment, allowing the pair to extend its rebound.

GBP/USD News

Gold clings to modest daily gains near $2,330

Gold clings to modest daily gains near $2,330

After a quiet European session, Gold edges higher toward $2,330. Following Friday's sharp decline, XAU/USD manages to hold its ground as the benchmark 10-year US Treasury bond yield struggles to push higher, while the USD weakens on upbeat market mood.

Gold News

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Bitcoin dipped under $63,000 on Monday, lowering crypto market capitalization by over 3%, per CoinGecko data. BTC is in a state of decline, and news of VanEck’s Spot Bitcoin ETF launch in Australia failed to improve traders' sentiment. 

Read more

Three things to watch this week: Key elections and inflation data

Three things to watch this week: Key elections and inflation data

 This week we have some key elections in France and the UK, and we get inflation data from the US and major European economies that will determine the course of interest rates in the coming months.

Read more

Forex MAJORS

Cryptocurrencies

Signatures