USD/MXN tumbles to 19.00 after Mnuchin’s comment boost Mexican Peso

US Treasury Secretary Mnuchin: we are close to a deal with Mexico and Canada tariffs.
Mexican peso soars after Mnuchin comments, the biggest gainer among most-traded currencies.

Matías Salord FXStreet

The USD/MXN dropped sharply from the highest level since last Thursday to the lowest in a week and to the 19.00 area. Earlier today, the pair rose to 19.25 but then slide dramatically following US Treasury Secretary comments.

According to the Wall Street Journal, Mnuchin signaled they are close to an understanding with Mexico and Canada on resolving steel and aluminum tariffs. Mexican officials are expected to announce retaliatory measures in two weeks. The last report point to easing tensions that boosted the Mexican peso and also the Canadian dollar. Also, the WSJ, said Mnuchin will travel soon to China to continue with negotiations, adding to the recent improvement in market sentiment.

Market participants mostly ignored US data released today. In Mexico, the key event of the week will be the Banxico meeting tomorrow. No change in rates is expected.

USD/MXN Levels To watch

The Mexican peso is the top performer today. The USD/MXN appeared to be ready to reinforce the bullish momentum before reversing. During the slide, the pair broke the 19.10 support (now immediate resistance) and bottomed at 19.00. The area around 19.00 is the closest barrier and a break lower would clear the way for a test of 18.90, the support that protects the YTD low at 18.73.

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 stays weak above 1.1750 ahead of German/ EU PMI data

EUR/USD remains on the back foot above 1.1850 in the European session on Friday, well within striking distance of a nearly one-month low set the previous day. Unabated US Dollar demand and nervousness ahead of the German and Eurozone business PMI data keep the pair undermined.

GBP/USD recovers above 1.3450 after strong UK Retail Sales data

GBP/USD is recovering ground above 1.3450 in European trading on Friday, helped by a modest uptick in the Pound Sterling after a bigger-than-expected increase in the UK Retail Sales for January. However, the further upside appears limited in the pair amid persistent US Dollar strength and ahead of key UK and US data.

Gold rises for third day on geopolitical risks, US data eyed

Gold gains some positive traction for the third consecutive day on Friday. The upside potential, however, seems limited amid the mixed fundamental backdrop. Moreover, traders might opt to wait for the key US macro releases – the Advance Q4 GDP report and the Personal Consumption Expenditures (PCE) Price Index – before placing fresh directional bets.

Bitcoin, Ethereum and Ripple remain range-bound as breakdown risks rise

Bitcoin, Ethereum, and Ripple are trading sideways within consolidation ranges on Friday, signaling a lack of directional bias in the broader crypto market. BTC rebounded from key support, and ETH is nearing the lower consolidation boundary, while XRP is holding at its lower trendline boundary.

Hawkish Fed minutes and a market finding its footing

It was green across the board for US Stock market indexes at the close on Wednesday, with most S&P 500 names ending higher, adding 38 points (0.6%) to 6,881 overall. At the GICS sector level, energy led gains, followed by technology and consumer discretionary, while utilities and real estate posted the largest losses.

Official Trump price approaches breakout with mixed signals from traders

Official Trump (TRUMP) is trading at $3.50 at the time of writing, approaching its upper consolidation range. A breakout from this range could open the door for an upside move. On-chain data shows market indecision, with balanced flows between bulls and bears, signaling a lack of clear directional bias.