- The USD/MXN falls to a minimum of two days in 19.25.
- The US dollar continues to suffer the distrust of the market in the face of the increase in the American deficit if the law ‘Big Beautiful Bill’ of Trump is approved.
- Donald Trump threatens Europe with 50% tariffs and Apple with 25% rates.
The USD/MXN records losses for the second consecutive day, sliding this Friday at a minimum of two days in 19.25 after trying a daily maximum hours before 19.37. At the time of writing, the PAR is quoted over 19.30, losing 0.08% in what we have been working on.
The US dollar descends to its lowest level in May
The US dollar index (DXY) is falling this Friday to levels not seen from April 30 to 99.14. The green ticket arrives at the end of the week punished after the reduction of US debt rating by Moody’s last Friday.
In recent days, The fears for the increase in the United States deficit have increased After the approval by the Chamber of Representatives of Donald Trump ‘Fiscal Bill’ Big Beautiful Bill ‘. The law, which was approved yesterday by a vote, must now pass the Senate exam, but Its approval could increase the country’s federal deficit by 3.8 billion dollars during the 2026-2034 periodas estimated by the US budget office.
To end up worsening the feeling of the market compared to the US and the dollar, Donald Trump has published today in Truth Social that if an agreement is not reached with the European Union will impose 50% tariff About European products from June 1. In addition, he has threatened Apple with taxes of 25% if he does not transfer his production to the United States.
The trade balance of Mexico records a deficit of 88 million dollars
Today, the National Institute of Statistics and Geography of Mexico (INEGI) has published its commercial balance data, showing a deficit of 88 million dollars in April after getting a surplus of 3,442 million in March.
Yesterday, Mexico confirmed that the Gross Domestic Product (GDP) of the first quarter grew 0.8%, above 0.5% of the last third of 2024, in line with what was expected. On the other hand, the inflation of the first half of May showed a growth of 0.09%, when a 0.1%drop was expected.
Next week, Mexico will publish its unemployment rate on Tuesday and the minutes of the Banxico monetary policy meeting on Thursday.
USD/MXN Price levels
The USD/MXN tendency points down in short and long term graphics, with the relative force index (RSI) below 50 in both periods and pointing out more decreases in the next few hours.
In case of extending the fall, the main support is at a minimum of 2025 reached this week in 19.23. Below, the objective is on 19.11/19.06, soils in October and September 2024, respectively. Below, the round level of 19.00 could contain the descent.
Upwards, the first resistance is in the mobile average of 100 periods in one -hour graph at 19.32. Above the focus is on the ceiling of this week around 19.50. A rupture of this level would point to the maximum of May registered 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.
