- The USD/MXN falls to a new minimum of 2025 in 19.25.
- The US dollar remains weakened by the reduction of Moody’s credit rating to the United States.
- After the statements of several members of the FED in the American session, the focus will turn to the data of Mexico that will be published tomorrow and Thursday.
The USD/MXN extends its losses for the third consecutive day, reaching a minimum of seven months on Tuesday in 19.25. The pair has moved very little since the beginning of the day, testing a daily maximum in 19.33 and then falling to its lower level than 2025.
At the time of writing, in the early hours of the American session, the USD/MXN quotes about 19.27, losing 0.17% daily.
The US dollar continues to be affected by Moody’s’s reduction to US debt rating.
The American dollar index (DXY) remains weakened after yesterday due to the reduction of US debt rating by Moody’s from AAA to AA1. The DXY index today reached a minimum of 12 days at 100.05.
While they are expected whether or not there will be new holders on possible commercial agreements between the White House and other countries, The focus in the next few hours will be in the comments of several members of the Federal Reserve. It is expected that in the American session and after the closure, Adriana Kugler, a member of the Board of Governors of the FED, Alberto Musalem, president of the Fed of Sant Louis, Beth Hammack, president of the Fed de Cleveland, Raphael Bostic, president of the Fed of Atlanta, and Mary Daly, head of the Fed of San Francisco. Comments could move the USD/MXN price
Mexico will publish several key data this week
For its part, the economic calendar shows this week several important data on the Mexican economy. Tomorrow Wednesday the March retail sales figureswaiting for an annual increase after the fall of 1.1% of February, and an increase of 0.1% monthly compared to the rise of 0.2% of the previous month.
Thursday will be the strong day for Mexican data. At 12.00 GMT the inflation of the first half of May will be published. A 0.1% drop is foreseen compared to the increase of 0.12%, while for the underlying indicator an increase of 0.16% is expected, below +0.34% above. At the same time, the Gross Domestic Product (GDP) of the first quarter of the year will be announced, waiting for a 0.8% annual increase if the first estimate published in April is met.
USD/MXN Price levels
The relative force index (RSI) of 14 points is maintained well below 50 in long -term graphics, indicating more falls in the next few hours, although in time graph the indicator suggests the imminence of a slight correction.
Downwards, the key support is in 19.25, minimum of today and all 2025. A breakdown of this level would point around 19.11/19.06, soils of October and September 2024, respectively. Below, the round level of 19.00 could contain the descent.
Upwards, a clear breakdown of the mobile average of 100 periods in one -hour graphic in 19.40 could cause an ascent to 19.56, Friday roof. Above, the objective will be in the maximum of May achieved on day 6 in 19.78.
Mexican weight FAQS
The Mexican weight (MXN) is the most commercialized currency among its Latin American peers. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even remittance levels sent by Mexicans living abroad, particularly in the United States. Geopolitical trends can also affect MXN: for example, the Nearshoring process (or the decision of some companies to relocate the manufacturing capacity and supply chains closer to their countries of origin) is also considered a catalyst for the Mexican currency, since the country is considered a key manufacturing center in the American continent. Another catalyst for MXN is oil prices, since Mexico is a key exporter of the raw material.
The main objective of the Central Bank of Mexico, also known as Banxico, is to maintain inflation at low and stable levels (in or close to its 3%target, the midpoint of a tolerance band between 2%and 4%). To do this, the bank establishes an adequate level of interest rates. When inflation is too high, Banxico will try to control it by raising interest rates, which makes the indebtedness of homes and companies more cooling, thus cooling the demand and the economy in general. The highest interest rates are generally positive for Mexican weight (MXN), since they lead to higher yields, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the MXN.
The publication of macroeconomic data is key to evaluating the state of the economy and can have an impact on the valuation of the Mexican weight (MXN). A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only attracts more foreign investment, but it can encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this fortress is accompanied by high inflation. However, if the economic data is weak, the MXN is likely to depreciate.
As an emerging market currency, the Mexican weight (MXN) tends to rise for periods of risk, or when investors perceive that the general market risks are low and, therefore, are eager to participate in investments that carry a higher risk. On the contrary, the MXN tends to weaken at times of market turbulence or economic uncertainty, since investors tend to sell higher risk assets and flee to the most stable safe shelters.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
