• USD/MXN down 0.37%, trading at 17.0685, as the Mexican Peso recovers some of its losses.
  • Investors turn cautious ahead of the Federal Reserve meeting, where updated economic projections are expected.
  • Preliminary data from INEGI suggests the Mexican economy likely grew 3.4% YoY in August.

The Mexican Peso (MXN) erases some of its Monday’s losses versus the Greenback (USD) and reclaims the 20-day Moving Average (DMA) despite a firm US Dollar (USD), with traders bracing for tomorrow’s US Federal Reserve’s decision. At the time of writing, the USD/MXN is trading at 17.0685, down 0.37%.

USD/MXN trades lower despite a strong US Dollar, as investors await updated economic projections from the Federal Reserve

Investor sentiment has turned negative ahead of the Fed meeting. During the last economic projections, the Fed anticipated 1% economic growth, a 4.1% unemployment rate, 3.2% PCE inflation, 3.9% core PCE inflation, and the Federal Funds Rate (FFR) peaking at 5.60%. These projections will be updated and play a crucial role in shaping the Fed’s future policy decisions.

In the meantime, housing data was revealed and came worse than expected. Housing starts slumped 11.3% last month, the lowest level since June 2020. Data for July was revised lower to show starts accelerating to a rate of 1.447 million units instead of the previously reported 1.452 million units. Meanwhile, Building Permits jumped 6.9% above the prior month’s 0.1% expansion, the most significant rise in six months.

Meanwhile, US Treasury bond yields are trading in positive territory, with the 10-year note coupon yielding 4.337% amidst a US 20-year bond auction, while the Greenback, as shown by the US Dollar Index (DXY), is firm at around 105.12.

Across the border, the Mexican economic docket revealed a poll by the Instituto Nacional de Estadisitca Geografia e Informatica (INEGI), which shows the economy likely grew 3.4% in August compared with the same month a year earlier, in a preliminary estimate from the statistics agency.

USD/MXN Price Analysis: Technical outlook

At the beginning of the week, the USD/MXN could not crack the 100-DMA at 17.2091, opening the door for a pullback, which witnessed the pair breaching the 20-DMA at 17.1075. With that said, and with price action below most Moving Averages, the exotic pair could again test the psychological 17.00 figure. However, it must challenge the 50-DMA at 17..0101 before sliding towards the figure and beyond. For a bullish resumption, the USD/MXN must reclaim the 100-DMA, followed by the 17.5000 figure.

USD/MXN

Overview
Today last price 17.1002
Today Daily Change -0.0353
Today Daily Change % -0.21
Today daily open 17.1355
 
Trends
Daily SMA20 17.1046
Daily SMA50 17.0167
Daily SMA100 17.2252
Daily SMA200 17.9425
 
Levels
Previous Daily High 17.1825
Previous Daily Low 17.0304
Previous Weekly High 17.5959
Previous Weekly Low 17.0504
Previous Monthly High 17.4274
Previous Monthly Low 16.6945
Daily Fibonacci 38.2% 17.1244
Daily Fibonacci 61.8% 17.0885
Daily Pivot Point S1 17.0497
Daily Pivot Point S2 16.964
Daily Pivot Point S3 16.8976
Daily Pivot Point R1 17.2019
Daily Pivot Point R2 17.2683
Daily Pivot Point R3 17.354

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD drops below 1.0700 on stronger USD, EU political angst

EUR/USD drops below 1.0700 on stronger USD, EU political angst

EUR/USD extends losses below 1.0700 in the European session on Friday. Unabated US Dollar demand and looming EU political uncertainty exert downside pressure on the pair. US sentiment data is awaited. 

EUR/USD News

USD/JPY reverses gains to near 157.00 amid risk aversion

USD/JPY reverses gains to near 157.00 amid risk aversion

USD/JPY has pared back gains to trade near 157.00 in the European trading hours on Friday. Broad risk aversion helps the Japanese Yen recover ground after falling hard on the Bank of Japan's decision to hold the policy settings unchanged.

USD/JPY News

Gold trades in familiar territory amid mixed signals from US economy

Gold trades in familiar territory amid mixed signals from US economy

Gold continues to trade in a range established in spring as traders respond to mixed macroeconomic signals. Whilst the data points to a fall in inflation, Fed officials are more cautious.

Gold News

Monero price poised for a downward correction

Monero price poised for a downward correction

Monero price has encountered resistance at a critical level. The technical outlook suggests a potential short-term correction as momentum indicators signal a bearish divergence.

Read more

US Dollar holding up well despite rate pricing

US Dollar holding up well despite rate pricing

It’s been an interesting week for financial markets. The most striking development in our opinion is the fact that the market is back to pricing two full rate cuts from the Fed in 2024, and yet, the Dollar has held up relatively well considering.  

Read more

Forex MAJORS

Cryptocurrencies

Signatures