- Mexican Peso accelerates the upside versus US Dollar after breaking key technical level.
- US data in line with expectations, Mexican activity stagnates in October.
The USD/MXN broke under 19.50 and quickly fell further hitting 19.40, for the first time since December 5. The pair remains near the low, under pressure as the US Dollar posts mixed results on Friday.
Economic data from the US showed the Core Personal Consumption Expenditure Price Index rose 0.2% in November, in line with expectations. A different report showed Durable Goods Orders dropped 2.1%, against expectation of a 0.6% slide. The numbers did not have a significant influence on the US Dollar.
In Mexico, the Economic Activity index stagnated in October, against expectations of a 0.3% increase. Compared to a year earlier, the index rose 4.40%. On Thursday, inflation that came in mixed with the headline index rising after six consecutive drops (from 7.46% to 7.77%), while the core rate slowed down (8.37% to 8.35%).
Levels to watch
The consolidation below 19.70 left the USD/MXN vulnerable to more losses. Recently it broke the 19.50 support area falling to as low as 19.40. The bearish bias prevails with the next relevant support at 19.30. A recovery back above 19.50 would alleviate the pressure. The next resistance stands at 19.60, with a recovery above adding strength to the US Dollar.
USD/MXN daily chart
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
Editors’ Picks
AUD/USD remains capped below the 0.6600 barrier ahead of the RBA’s Bullock speech, US CPI data

The AUD/USD pair edges lower below the 0.6600 barrier during the early Asian session on Monday. The upbeat US Nonfarm Payrolls data lift the US Treasury bond yields and the US Dollar. The pair trades around 0.6572, down 0.09% on the day.
EUR/USD: US Dollar turns north as central banks’ decisions loom

The US Dollar turned north this past week, partially losing its pace on Thursday, as speculative interest took a break ahead of the United States employment figures scheduled for Friday. On the contrary, the Euro remained on the back foot as the economic future remains uncertain.
Gold bulls turn hesitant ahead of US inflation data, Fed meeting

Following an impressive rally at the beginning of the week, Gold turned south and snapped a three-week winning streak. As market focus shifts to next week’s key data releases and central bank events, XAU/USD’s technical outlook points to a loss of bullish momentum.
Altcoin bull cycle 2023 picks by analyst: Ethereum, ChainLink, Arbitrum, Optimism

Crypto analyst Michaël van de Poppe picked four altcoins for the ongoing bull run, in his recent video on YouTube. The analyst believes these altcoins could outperform other assets and yield gains for traders, alongside Bitcoin price rally to $48,000.
Week Ahead – Will the central bank bonanza kill the festive joy or fuel it?

Fed, ECB, BoE and SNB hold their final policy decisions of the year. Will they push back on rate cut expectations? US CPI and flash PMIs will be crucial too. UK GDP, Aussie jobs also on the agenda.