- USD/MXN attracts some buyers on Tuesday amid the USD demand.
- Mexico’s headline inflation came in at 4.64% for the first half of September from 4.64% at the end of August.
- Minneapolis Federal Reserve Bank President said he sees one more rate hike this year.
- Market players will closely monitor Banxico interest rate decision, US Core Personal Consumption Expenditure (PCE) Price Index this week.
The US Dollar (USD) gains traction for the second consecutive day against the Mexican Peso (MXN) during the early Asian trading hours on Tuesday. A stronger US Dollar and higher US Treasury bond yields supported the pair. USD/MXN currently trades around 17.47, up 0.46% on the day.
Data from statistics agency INEGI showed that Mexico’s headline inflation came in at 4.64% for the first half of September from 4.64% at the end of August. Mexico President Andres Manuel Lopez Obrador stated last week that Banxico was doing well as inflation slows but the central bank should concentrate more on fostering economic development. However, if the rate of inflation eases, Banxico may adjust its monetary policy, and could weigh on the Mexican Peso.
On the USD’s front, the higher for longer rate narrative in the US boosts the Greenback broadly. Early Tuesday, Minneapolis Federal Reserve Bank President, Neel Kashkari stated that he is one of the Fed policymakers who sees one more rate hike this year. He added that US rates probably have to go a little bit higher and be held there for longer, to cool things off. This, in turn, lifts the USD against the Mexican Peso and acts as a tailwind for the USD/MXN pair.
Later this week, the US CB Consumer Confidence for September and New Home Sales will be due later on Tuesday. The closely watched event will be the US Core Personal Consumption Expenditure (PCE) Price Index on Friday. On the Mexican docket, the Trade Balance for August will be released on Wednesday and Banxico Interest Rate Decision will be scheduled on Thursday.
|Today last price||17.5407|
|Today Daily Change||0.1457|
|Today Daily Change %||0.84|
|Today daily open||17.395|
|Previous Daily High||17.4542|
|Previous Daily Low||17.1723|
|Previous Weekly High||17.2506|
|Previous Weekly Low||16.9982|
|Previous Monthly High||17.4274|
|Previous Monthly Low||16.6945|
|Daily Fibonacci 38.2%||17.3465|
|Daily Fibonacci 61.8%||17.28|
|Daily Pivot Point S1||17.2268|
|Daily Pivot Point S2||17.0587|
|Daily Pivot Point S3||16.945|
|Daily Pivot Point R1||17.5086|
|Daily Pivot Point R2||17.6223|
|Daily Pivot Point R3||17.7905|
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.