- The USD/MXN falls to 19.18, minimum of 2025 already tested last week.
- The US dollar goes back after the weak private employment data of the USA.
- The United States generated only 37,000 private jobs in May, according to ADP, its worst figure since January 2021.
The USD/MXN rose in the European opening to a daily maximum in 19.24, but failed to maintain the impulse. After the publication of the weak private employment data of the United States, it has backed away from 19.18, minimum of 2025 and the last eight months already tested last week.
At the time of writing, the USD/MXN torque is quoted about 19.20, losing 0.22% in what we have been working on.
The US dollar falls to the minimum of the day after the weakening of private employment in the United States
The American dollar index (DXY) has fallen in the last hour, pushed by the weak private employment data in the United States. According to ADP, USA generated 37,000 jobs in Maywell below the 115,000 expected. In addition, the April figure was reviewed down, being 60,000 compared to the previous 62,000. The generation of employment in May has been registered in more than four years, specifically since January 2021.
Donald Trump has reacted to the data by publishing in Truth Social already. Hours before, the US president had also stated in the same social network the difficulty of reaching an agreement with China, pointing out that it was extremely difficult to agree with Xi Jinping.
Later in the day, the data of the ISM services of the United States for the month of May, whose result could move the dollar is expected. An improvement at 52 points is expected from 51.6 projected by the market.
The downward pressure in the dollar is benefiting the Mexican peso, which today reaches maximum since October 2024. All despite the rise in steel tariffs and aluminum executed today by the United States, which has increased to 50% the tax on these imports from the previous 25%.
Marcelo Ebrard, Secretary of Economy of Mexico, said yesterday that it was an unfair measure and said that this Friday he will present in Washingon the arguments to request an exclusion such as the one admitted to the United Kingdom.
USD/MXN Price levels
The relative force index (RSI) of 14 remains firm below 50, pointing out more space for short and long term falls. Below current support in 19.18, the torque could fall towards 19.11/19.06, where are the soils of October and September, respectively, before meeting the psychological zone of 19.00.
Upwards, the initial resistance of the USD/MXN awaits in the mobile average of 100 periods in time graph, in 19.29. Above waiting 19.45, roof of May 22, and above 19.78, higher level of May registered on day 6.
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.
