- USD/MXN faces challenges on improved risk appetite.
- Mexico’s mid-November inflation is expected to rise slightly.
- Downbeat US bond yields contribute to pressure on the US Dollar.
USD/MXN extends its losses for the second consecutive day, hovering around 17.1000 during the European session on Tuesday. The pair faces downward pressure fueled by risk-on sentiment, contributing to the overall weakness of the US Dollar (USD). The prevailing market consensus suggests that the Federal Reserve (Fed) has wrapped up its policy-tightening measures. Moreover, sentiment in the market is increasingly favoring the possibility of rate cuts by the Fed, expected to commence in March 2024.
The downbeat Consumer Price Index (CPI) in the United States (US) for October has led investors to reassess the likelihood of a Federal Reserve (Fed) rate hike at the December meeting and consider the potential for rate cuts in 2024.
US Dollar weakness persists on weaker US Treasury bond yields, with 10-year US Treasury yield and 2-year US bond yield stand at 4.39% and 4.90%, respectively.
According to the latest report from the US Bureau of Labor Statistics, the US CPI decelerated to 3.2% (YoY), falling below the consensus of 3.3% and down from the previous reading of 3.7%. The Core CPI eased to 4.0% (YoY), slightly below the previous figure of 4.1%, which was expected to remain unchanged.
FOMC meeting minutes are scheduled to be released on Tuesday, which could provide insights into the decision-making process of the Federal Reserve (Fed) committee regarding interest rates.
Mexico’s economic docket for Thursday will highlight the release of 1st half-month Inflation for November. The expectation is for a slight increase in the Mexico CPI and a marginal reduction in core CPI.
Additionally, the Bank of Mexico (Banxico) is set to release its latest meeting minutes, where the decision to maintain rates at current levels was accompanied by a shift in language from "for an extended period" to "for some time." The swap market indicates pricing in 50 basis points of cuts in the first half of 2024.
USD/MXN: more technical levels
|Today last price||17.0958|
|Today Daily Change||-0.0119|
|Today Daily Change %||-0.07|
|Today daily open||17.1077|
|Previous Daily High||17.2526|
|Previous Daily Low||17.0809|
|Previous Weekly High||17.7273|
|Previous Weekly Low||17.189|
|Previous Monthly High||18.4934|
|Previous Monthly Low||17.3786|
|Daily Fibonacci 38.2%||17.1465|
|Daily Fibonacci 61.8%||17.187|
|Daily Pivot Point S1||17.0415|
|Daily Pivot Point S2||16.9753|
|Daily Pivot Point S3||16.8698|
|Daily Pivot Point R1||17.2133|
|Daily Pivot Point R2||17.3188|
|Daily Pivot Point R3||17.385|
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.