USD/MXN stabilizes above 17.00 on firm US Dollar ahead of PMIs

USD/MXN shifts comfortably above $17.00 as the US Dollar remains resilient.
The appeal for risk-sensitive currencies remains weak due to the upside risks of a global slowdown.
Investors await the interest rate decision from the Banxico, which will be announced next week.

Sagar Dua FXStreet

The USD/MXN pair has shifted its auction above the crucial resistance of 17.00 on Friday. The asset strengthens as the US Dollar remains firm despite the Federal Reserve (Fed) announcing an unchanged interest rate decision on Wednesday as anticipated by market participants.

S&P500 futures added some gains in the European session, portraying an ease in the risk-off market mood. The broader trend is still opposing the appeal for risk-sensitive currencies due to the upside risks of a global slowdown.

The US Dollar Index (DXY) remains directionless near a six-month high around 105.70 amid uncertainty over the interest rate peak. Fed policymakers delivered a hawkish interest rate outlook at the Federal Open Market Committee (FOMC) meeting, hinting at one more interest rate increase of 25 basis points (bps), which will push interest rates to 5.50%-5.75%.

Meanwhile, investors will focus on the release of the preliminary S&P Global PMIs for September, which will be released at 13:15 GMT. The Manufacturing PMI is expected to improve marginally to 48.0 from the August reading of 47.9. The Services PMI, which tracks a sector that accounts for two-thirds of the US economy, is anticipated to rise to 50.6 from 50.5 in August.

On the Mexican Peso, investors focus on the interest rate decision from the Bank of Mexico (Banxico), which will be announced next week. The Mexico central bank has maintained interest rates unchanged at 11.25% in the past three monetary policies.

Economists at Société Générale cited strong growth outperformance and progress on inflation containment have helped MXN to eclipse the EM currency complex this year. However, headwinds are accumulating from currently rich valuations, shifts in the Developed Markets rates paradigm, and changes to domestic policies regarding currency intervention.

USD/MXN

Overview
Today last price	17.1778
Today Daily Change	-0.0562
Today Daily Change %	-0.33
Today daily open	17.234

Trends
Daily SMA20	17.1481
Daily SMA50	17.0291
Daily SMA100	17.2011
Daily SMA200	17.9049

Levels
Previous Daily High	17.2506
Previous Daily Low	17.0639
Previous Weekly High	17.5959
Previous Weekly Low	17.0504
Previous Monthly High	17.4274
Previous Monthly Low	16.6945
Daily Fibonacci 38.2%	17.1793
Daily Fibonacci 61.8%	17.1352
Daily Pivot Point S1	17.115
Daily Pivot Point S2	16.9961
Daily Pivot Point S3	16.9283
Daily Pivot Point R1	17.3018
Daily Pivot Point R2	17.3696
Daily Pivot Point R3	17.4885

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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