USD/MXN consolidates near 17.01 after recent losses, eyes on US labor data
- USD/MXN moves sideways amid improved US Dollar.
- US ADP Employment Change improved to 164K from 101K prior.
- US Initial Jobless Claims reduced to 202K from the previous 220K.
- The upbeat US bond yields reinforce the strength of the Greenback.
USD/MXN moves sideways after posting losses in the previous session, hovering near 17.01 during the European session on Friday. However, the US Dollar (USD) improves to near 102.60, recovering its recent losses with the help of improved US bond yields. Additionally, the better-than-expected labor data from the United States (US) underpinned the Greenback and limited its losses on Thursday.
At the time of writing, the 2-year and 10-year yields on US bond coupons stand lower at 4.39% and 4.01%, respectively. Moreover, ADP Employment Change added new jobs of 164K, more than the previous figure of 101K and the market's expectation of 115K. Additionally, Initial Jobless Claims for the week ending on December 29 reduced the number of claims of unemployment benefits to 202K from the previous 220K, exceeding the anticipated 216K.
Traders eagerly await the release of additional data from the US employment market to gain more cues on the nation's economic scenario. The spotlight is on key indicators such as Average Hourly Earnings and Nonfarm Payrolls (NFP) data for December.
On the other side, the recent moderate data might offer some relief to the Bank of Mexico (Banxico) by potentially reducing the pressure for an immediate interest rate reduction. With no data releases from Mexico this week, traders are looking ahead to next week's Consumer Confidence and Headline Inflation data for December. These forthcoming releases are expected to be pivotal in shaping market expectations and influencing Banxico's decisions regarding monetary policy.
(This story was corrected on Friday at 08:30 GMT to say "during the European session" instead of "Asian session" in the first paragraph.)
Author
Akhtar Faruqui
FXStreet
Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.
