USD/MXN rises modestly after Banxico keeps rates unchanged

Banxico left the key interest rate unchanged at 7.75%.
Mexican peso dropped modestly after the announcement.
USD/MXN gains on the back of a stronger US dollar across the board.

Matías Salord FXStreet

USD/MXN is trading at the same level it had before the monetary policy decision from the Bank of Mexico. The central bank, as most expected, left interest rates unchanged. Immediately after, the pair rose to 18.69 but only to quickly pull back to 18.60.

Earlier today it peaked at 18.76, the highest level in a week but it lost strength and retreat. The pair is still positive for the day and continues to move to move with a bullish bias in the very short term supported by a stronger US dollar. It needs to break on top of 18.70 to clear the way to more gains.

The Bank of Mexico announced that it kept the overnight rate unchanged at 7.75% as expected, some analysts considered the possibility of a rate hike. The decision was unanimous. In the statement, Banxico mentioned that will maintain a prudent policy stance going forward and repeated that it would continue to monitor the exchange rate, MXN-US differential rates, and economic slack. Regarding the economic outlook, growth risks are tiled to the downside while inflation risks to the upside.

Technical levels

To the upside, the area around 18.70 is the immediate resistance, followed by 18.80 and then 18.95. Today USD/MXN traded on top of 18.70 but failed to hold on top and lost bullish strength. On the flip side, support levels are seen at 18.60, followed by the strong barrier around 18.50 and below at 18.30.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.