- 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
GBP/USD holds gains above 1.2300 ahead of BoE policy announcements
GBP/USD is consolidating gains above 1.2300 ahead of the BoE’s policy announcements. Strong UK CPI data, PM Sunak’s Brexit success and dovish Fed hike add strength to the Cable’s bullish momentum.
EUR/USD consolidates gains below 1.0900
EUR/USD has retreated modestly and gone into a consolidation phase below 1.0900 following the rally witnessed in the Asian session. Ahead of the mid-tier data releases from the US, the US Dollar stages a technical correction and makes it difficult for the pair to stretch higher.
Gold extends Fed-inspired bounce off $1,960 on softer yields
Gold price gathered bullish momentum and climbed above $1,980 early Thursday before retreating modestly. The benchmark 10-year US Treasury bond yield is up 1% on the day following Wednesday's sharp decline, limiting XAU/USD's upside for the time being.
Binance market share could drop after abolishing most zero-fee trading, boosts TrueUSD stablecoin
Binance phased out almost all zero-fee buying and selling BTC along with multiple trading pairs from its platform after nine months on Wednesday. An exemption was allowed for the TrueUSD/Bitcoin (TUSD/BTC) pair.
BoE Interest Rate Decision Preview: Preparing ground for a rate hike pause in May Premium
The Bank of England (BoE) is seen keeping up its interest rate increases, although at a slower pace in March, as the world battles financial sector risks. The BoE will announce its interest rate decision at 12:00 GMT on Thursday.