USD/MXN Price News: Mexican Peso sellers take clues from options market, Doji candlestick near 17.10

Anil Panchal FXStreet

USD/MXN picks up bids to print mild gains around 17.10 amid early hours of Thursday’s Asian session, after reversing from a two-week low the previous day.

The Mexican Peso (MXN) pair dropped to the lowest levels in a fortnight on Wednesday before reversing from 17.05 but failed to offer any decisive closing and hence portrayed a bullish Doji candlestick on the Daily chart. The same joins the pause in the options market’s bearish bias to underpin the USD/MXN pair’s latest rebound.

USD/MXN: Daily chart

Trend: Limited recovery expected

That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, printed the first daily gain in six while marking the 0.003 figure by the end of Wednesday’s North American trading session.

It’s worth noting, however, that the weekly RR still shows the strongest bearish bias in five weeks and hence suggests limited room for the Mexican Peso sellers.

Also read: USD/MXN prolongs its downward streak despite hawkish Fed remarks

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

AUD/USD remains offered below 0.7000

AUD/USD extends its decline for a second consecutive session, retreating toward the 0.6960 region, or multi-day lows, ahead of the opening bell in Asia. The pair’s decline comes as investors keep digesting the RBA’s latest monetary policy decision and gear up for US Midterm election results.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.

Gold struggles near $3,900 as traders assess Middle East developments,US election risks

Gold (XAU/USD) loses momentum on Tuesday as Oil prices rebound after the Wall Street Journal (WSJ) reported a US strike on Iran’s Qeshm Island. At the time of writing, XAU/USD trades around $3,909, down 0.93% on the day.

BNB Price Forecast: BNB rebounds above $700 as Binance records net inflows after hack

BNB (BNB) springs up above $700 on Tuesday, as bulls push to regain momentum following last week’s sell-off. The decline from highs above $760 on Thursday to lows of $680 was largely driven by investor reaction to the security breach on Binance, the largest crypto exchange. The hack impacted approximately $6.3 billion, the largest in crypto industry history.

US Dollar Index edges up within range with midterm elections front and centre

The US Dollar Index is picking up from session lows but remains within previous ranges, below 102.00. The Greenback is drawing support from hostilities in Iran and higher Oil prices, but US political uncertainty is capping gains.

The 2% inflation target came from a throwaway remark. It now moves trillions

The Federal Reserve's 2% inflation goal grew out of an off-the-cuff remark by a New Zealand politician in 1988. Bond investors still price long-term US debt as if 2% holds, so a change in how the Fed measures inflation would move markets.