- The USD/MXN revolves positively after a minimum fall of three days.
- The US dollar ranges from the accumulation of US news and data.
- Donald Trump announces that China has violated the commercial agreement.
- PCE inflation data meet expectations, while Michigan’s consumer confidence improves forecasts.
- The unemployment rate of Mexico rises to 2.5% in April, as expected.
The USD/MXN oscillates this Friday between shocks caused by the political news that comes from the US and the figures of the economic data. The pair has fallen to minimum of three days in 19.25 in the previous one of the American Opening but has subsequently took a daily maximum of 19.35.
After these fluctuations, the price of the dollar against Mexican peso is currently 19.34, winning 0.11% daily.
The US dollar is inclined to rise after several rebounds caused by political holders and economic data
The dollar index (DXY) has suffered multidud of fluctuations in what we have been in the day, with the green ticket inclined to the rise around 99.66 after previously trying minimal not seen since Tuesday at 99.13.
The day began with the sequels of the last hour of Thursday, when The Court of Appeals for the Federal Circuit of the United States suspended the ruling against tariffs previously announced by the International Trade Court. The dollar fell to a three -day floor in the early hours of the Asian session, but then regained land, until the US president Donald Trump published in Truth Social that China had violated the commercial agreement. The USD fell again with this latest news, but bounced up after the publication of the United States data, which showed that May’s inflation was moderated as expected in its underlying index But something else in the general index. Then, the feeling of the consumer of the University of Michigan for May reinforced the good news, staying at 52 pointsabove the expected 51. In addition, one and five years inflation expectations soften more than expected.
Waiting for new headlines about tariffs, the week will close with the speech of Raphael Bostic, president of the Atlanta Fed, who will speak in the next few hours.
The unemployment rate of Mexico rises to 2.5% in April; Banxico minutes highlight uncertainty
In Mexico the April unemployment rate, which has risen to 2.5% From 2.2% of March, fulfilling expectations.
On the other hand, yesterday the Banxico minutesrevealing that uncertainty continues to dominate the period between monetary policy decisions and that the national economy is expected to continue to show weakness. Regarding this, the governor of Banxico, Victoria RodrÃguez Ceja, commented on Wednesday that Mexican GDP is expected to increase only 0.1% this year, well below the 0.6% previously planned.
USD/MXN Price levels
The relative force index (RSI) of 14 is above 50 in short -term graphics, indicating space for more increases in the USD/MXN, although the bass inclination is maintained in the long term.
Upwards, the first resistance is at the maximum of this week in 19.42. Above, the increase can find containment in 19.78, higher level of May registered last day 6.
A negative turn could find initial support on 19.30, a mobile average of 100 periods in the one -hour graph. Below, a break of the minimum of 2025 in 19.18 could stop around 19.11/19.06, soils in October and September 2024, respectively, before reaching the psychological zone of 19.00.
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.
