USD/MXN retraces recent gains near 17.1400, focus on US GDP data


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  • USD/MXN failed to cheer the better-than-expected US data.
  • The mixed remarks from Fed officials put weight on the US Dollar.
  • Banxico Deputy Governor Jonathan Heath indicated one or two rate cuts in 2024.

USD/MXN halts its three-day winning streak due to the softer US Dollar (USD), which could be attributed to the mixed remarks from the Federal Reserve’s (Fed) members. Moreover, the mixed data from the United States (US) failed to heal the Greenback. The USD/MXN pair trades around 17.1400 during the European session on Wednesday.

Fed Governor Christopher Waller suggested a more accommodative approach of not insisting on maintaining high-interest rates, while Fed Governor Michelle Bowman mentioned the likelihood that the US Fed could keep the policy rate at a higher level than pre-pandemic levels.

In September, the US Housing Price Index (MoM) maintained stability at 0.6%, surpassing anticipated levels. Simultaneously, the CB Consumer Confidence Index saw an uptick, reaching 102.0. In contrast, the Richmond Fed Manufacturing Index reported an unexpected negative reading of 5, deviating from the anticipated positive figure.

On the other side, the Mexican Peso (MXN) lost ground earlier this week against the US Dollar as Jonathan Heath, Bank of Mexico’s (Banxico) Deputy Governor, remarked that core prices need to decrease further. He also indicated that there might be one or two rate cuts next year, emphasizing that any adjustments would be made "very gradually" and "with great caution."

Moreover, the recent minutes from Banxico highlight the significance of maintaining higher interest rates for an extended period to achieve the target inflation rate. This stance, combined with positive inflation data disclosed earlier., might have put downward pressure on the USD/MXN pair. Additionally, traders will watch Mexico’s Jobless Rate for October on Thursday.

USD/MXN: other levels to wath

Overview
Today last price 17.149
Today Daily Change 0.0174
Today Daily Change % 0.10
Today daily open 17.1316
 
Trends
Daily SMA20 17.3843
Daily SMA50 17.6962
Daily SMA100 17.3568
Daily SMA200 17.5947
 
Levels
Previous Daily High 17.2148
Previous Daily Low 17.1049
Previous Weekly High 17.2695
Previous Weekly Low 17.0658
Previous Monthly High 18.4934
Previous Monthly Low 17.3786
Daily Fibonacci 38.2% 17.1469
Daily Fibonacci 61.8% 17.1728
Daily Pivot Point S1 17.086
Daily Pivot Point S2 17.0405
Daily Pivot Point S3 16.9761
Daily Pivot Point R1 17.1959
Daily Pivot Point R2 17.2603
Daily Pivot Point R3 17.3059

 

 

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