USD/MXN falls toward the 18.1000 area, following a solid US NFP report

USD/MXN dropped from around 18.2600 to 18.1000 but stabilized around 18.1500.
A solid US Nonfarm Payrolls report weighed on the US Dollar against the Mexican currency.
Average Hourly Earnings edged lower, while the jobless rate remained unchanged.

Christian Borjon Valencia FXStreet

The USD/MXN slumps to a two-day low after a US jobs report was below estimates but showed that the labor market is still resilient. Contrarily to most G7 FX currencies, the Mexican Peso (MXN) stood tall against the US Dollar (USD). At the time of typing, the USD/MXN trades volatile within the 18.1500-18.1000 range, below its opening price.

USD/MXN drops after the US jobs report

On a thin liquidity trading session in observance of the Good Friday holiday, the US Department of Labor revealed that the United States (US) economy added fewer jobs than estimated. Figures came at 236K, below the consensus of 240K, and trailed the revised 326K February’s data. Digging deeper into the data, Average Hourly Earnings decreased to 4.2% YoY, beneath forecasts of 4.3%, and the Unemployment Rate was 3.4% YoY, 0.2% lower than the anticipated 3.6%.

The data pushed recessionary fears away, with US equity futures rising, after the release of the US Nonfarm Payrolls report.

US Treasury bond yields are climbing as traders began to price in a May rate hike, with the US 2-year T-bond yield, the most sensitive to interest rates, rising 18 basis points, at 3.966%, a whisker below 4%. The swaps market shows odds for a 25 bps increase at 70.7%, compared to Thursday’s 49.2%, as demonstrated by the CME FedWatch Tool.

USD/MXN 1-Hour Chart Reaction

The USD/MXN initial reaction was upwards to 18.2669 before shifting gears and collapsing below the S1 daily pivot point, which lies at 18.1630, extending its losses toward 18.1002, shy of cracking the S2 pivot at 18.0919. Since then, the USD/MXN settled at around 18.1229, in between the S1 and S2 pivot point levels.

USD/MXN

Overview
Today last price	18.1327
Today Daily Change	-0.1095
Today Daily Change %	-0.60
Today daily open	18.2422

Trends
Daily SMA20	18.4595
Daily SMA50	18.4816
Daily SMA100	18.9036
Daily SMA200	19.4941

Levels
Previous Daily High	18.381
Previous Daily Low	18.2004
Previous Weekly High	18.4681
Previous Weekly Low	17.99
Previous Monthly High	19.2324
Previous Monthly Low	17.8977
Daily Fibonacci 38.2%	18.2694
Daily Fibonacci 61.8%	18.312
Daily Pivot Point S1	18.168
Daily Pivot Point S2	18.0939
Daily Pivot Point S3	17.9874
Daily Pivot Point R1	18.3487
Daily Pivot Point R2	18.4552
Daily Pivot Point R3	18.5293

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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