- Mexican peso drops against the US Dollar but outperforms among EM currencies.
- Mid-month inflation data show prices easing more than expected in August in Mexico.
The USD/MXN moved all day with a bullish bias. During the American session the pair peaked at 19.77 and near the end of the session was trading at 19.75, up seven cents for the day. The US Dollar resume the upside after making a two-day correction from the YTD high at 19.89 to 19.64.
The main trend still points to the upside and global growth concerns and the lack of positive news support that bias. From a technical perspective, if USD/MXN rises back on top of 19.80 it will likely gain strength, signaling a test of weekly highs and probably 20.00. On the flip side, a daily close under 19.65 would ease the bullish pressure.
Mexico: Lower inflation, more rate cuts?
Data released today showed that Mexican inflation eased during the first half of August. The INEGI reported the CPI dropped by 0.08% during the first half of August, against expectations of a 0.17% increase. From a year ago, it rose 3.29%.
The slowdown in inflation open the doors to more rate cut from the Bank of Mexico. Last week it cut the key rate for the first time since 2014, from the decade high of 8.25% to 8.00%. The decision was not unanimous as one member voted to keep rates steady. It the Mexican peso remains steady, another rate cut or two before year-end appears to be granted according to most analysts.
Levels
USD/MXN
Overview
Today last price19.7533
Today Daily Change0.0645
Today Daily Change %0.33
Today daily open19.6888
Trends
Daily SMA2019.4386
Daily SMA5019.2283
Daily SMA10019.1603
Daily SMA20019.3427
Levels
Previous Daily High19.7754
Previous Daily Low19.641
Previous Weekly High19.7764
Previous Weekly Low19.3539
Previous Monthly High19.3628
Previous Monthly Low18.8643
Daily Fibonacci 38.2%19.6923
Daily Fibonacci 61.8%19.7241
Daily Pivot Point S119.628
Daily Pivot Point S219.5672
Daily Pivot Point S319.4935
Daily Pivot Point R119.7625
Daily Pivot Point R219.8362
Daily Pivot Point R319.897
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