USD/MXN trades lower near 17.7600 after retreating from weekly highs

USD/MXN retreats after the recent surge as Banxico kept rates at 11.25%.
Mexico’s central bank has committed to achieving its 3% target in 2025.
US Dollar receives upward support after Fed Chair Powell’s hawkish comments.

Akhtar Faruqui FXStreet

USD/MXN retreats from a weekly high, bidding near 17.7600 during the Asian trading hours on Friday. The pair received upward support after US Federal Reserve (Fed) Chair Jerome Powell mentioned at the International Monetary Fund (IMF) event on Thursday that current policies may not be enough to control inflation.

This sentiment resulted in a surge in US Treasury yields, offering support for the US Dollar (USD). The US Dollar Index (DXY) hovers around 105.90, with the 10-year US bond yield standing at 4.61% by the press time.

Additionally, the US weekly Initial Jobless Claims for the week ending November 4, coming in at 217K, slightly below both the market forecast of 218K and the previous week's figure of 220K, likely added further support to the Greenback.

On Thursday, the Bank of Mexico (Banxico) opted to maintain interest rates at 11.25%. In addition, the central bank has committed to working towards achieving its 3% target for headline inflation in the year 2025.

Economists at ING believe that Banxico is likely content to maintain the 600 basis points policy rate premium over Fed rates. This stance has contributed to the relative stability of USD/MXN, reduced implied volatility, and enhanced the Peso's appeal for carry trade strategies.

USD/MXN: additional levels to watch

Overview
Today last price	17.7644
Today Daily Change	-0.1095
Today Daily Change %	-0.61
Today daily open	17.8739

Trends
Daily SMA20	17.9557
Daily SMA50	17.6968
Daily SMA100	17.3353
Daily SMA200	17.6863

Levels
Previous Daily High	17.8792
Previous Daily Low	17.473
Previous Weekly High	18.141
Previous Weekly Low	17.2822
Previous Monthly High	18.4934
Previous Monthly Low	17.3786
Daily Fibonacci 38.2%	17.724
Daily Fibonacci 61.8%	17.6282
Daily Pivot Point S1	17.6049
Daily Pivot Point S2	17.3359
Daily Pivot Point S3	17.1987
Daily Pivot Point R1	18.011
Daily Pivot Point R2	18.1482
Daily Pivot Point R3	18.4172

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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