USD/MXN rebounds to 16.80 as risk-off sentiment prevails before US CPI release

USD/MXN halts its losing streak ahead of US Inflation data on Tuesday.
Mexican Industrial Production data is expected to show growth in January.
US CPI (MoM) is anticipated a slight increase in February.

Akhtar Faruqui FXStreet

USD/MXN snaps its eight-day losing streak as risk-off sentiment dominates ahead of the scheduled release of US inflation data on Tuesday. The USD/MXN pair trades higher around 16.80 during the European session.

The market anticipates a slight increase in February's US inflation (MoM) figure. A robust US Consumer Price Index (CPI) data would likely reduce the chances of an immediate rate cut by the Federal Reserve (Fed).

Mexico's economic calendar includes Industrial Production data for January on Tuesday, with market expectations indicating a monthly increase of 0.4% and a yearly rise of 2.1%. Additionally, market participants are eagerly anticipating the upcoming policy meeting of the Bank of Mexico (Banxico) on March 21.

The 12-Month Inflation rate decreased from a seven-month high in January. However, Core Inflation rose higher than the previous increase. Headline Inflation increased less than expected and lower than the previous rise.

US Nonfarm Payrolls added more jobs in February compared to January's figure and market expectations. However, US Average Hourly Earnings (YoY) increased but remained below both the estimated and previous readings.

Additionally, Federal Reserve (Fed) Chair Jerome Powell suggested potential cuts in borrowing costs sometime this year, highlighting that such actions would depend on the inflation trajectory aligning with the Fed's 2% target. According to the CME FedWatch Tool, there has been a slight decline in the probability of a rate cut in June, currently standing at 68.9%.

USD/MXN

Overview
Today last price	16.8116
Today Daily Change	0.0212
Today Daily Change %	0.13
Today daily open	16.7904

Trends
Daily SMA20	17.0183
Daily SMA50	17.0583
Daily SMA100	17.2194
Daily SMA200	17.2357

Levels
Previous Daily High	16.8335
Previous Daily Low	16.7818
Previous Weekly High	17.0292
Previous Weekly Low	16.7642
Previous Monthly High	17.2852
Previous Monthly Low	16.9953
Daily Fibonacci 38.2%	16.8016
Daily Fibonacci 61.8%	16.8138
Daily Pivot Point S1	16.7703
Daily Pivot Point S2	16.7503
Daily Pivot Point S3	16.7187
Daily Pivot Point R1	16.822
Daily Pivot Point R2	16.8535
Daily Pivot Point R3	16.8736

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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