- The USD/MXN falls to a minimum of two days in 19.38.
- The US dollar proves its lowest level since May 8.
- The Moody’s credit agency reduced the qualification of the sovereign debt of the United States to AA1 late Friday.
The USD/MXN has descended at the beginning of the week. After opening on Monday around 19.46, the PAR has risen to a daily maximum in the European morning to 19.49 and then falling into the American session to a minimum of two days in 19.39. Instantly, the dollar is quoted in front of the Mexican peso over 19.38, losing 0.35% in what we have been working on.
The US dollar descends to a minimum of 11 days after the Moody’s varapalo
The US dollar index (DXY) has fallen on Monday to 100.06, its lowest level since Paseo May 8. The generator of this decrease has been the reduction of Moody’s to the sovereign debt of the United States announced on Friday after the closure of the markets.
The American Credit Agency published that it reduced the US rating of the maximum score, AAA, AA1. The company justified this decision for the increase in public debt and the payment of interest significantly higher than other countries. The news has caused this Monday to devalue itself in front of its counterparts.
Despite the decrease in the dollar, the green ticket is not seeing major falls thanks to the statements of several members of the Fed, which are being favorable on Monday to continue with the restrictive policy of the entity. Raphael Bosticpresident of the Fed of Atlanta, said that inflation is not moving as fast as it was anticipated, and added that He leans just a cut of interest rates this year. For his part, the president of the Fed of New York, John Williams, has declared that the key word at this time is uncertainty. Finally, the vice president of the Federal Reserve, Philip JeffersonHe added that there are risks for both employment and inflation, so It is appropriate to wait and see.
The Mexican economy could stagnate in April, according to INEGI
The Mexican Statistics and Geography Institute (INEGI) today published its Timely indicator of economic activity (IOAE) For the month of April, showing a 0.0% variation compared to the previous month. According to the indicator, this would show economic stagnation in the country after there was a contraction of 0.2% in March.
In the next few days, INEGI will publish several relevant data, among which March retail sales (Wednesday) and inflation of the first half of the month next to the GDP of the first quarter (Thursday). On Friday, the week will close with the April Balance and the current account of the first third of the year.
USD/MXN Price levels
He Relative force index (RSI) of 14 points down in short and long term graphicsshowing more space to go back in the next few hours.
Down, the key support is at 19.30, minimum of last Wednesday, May 14 and all 2025. A breakdown of this level would point around 19.11/19.06, October and September soils, 2024, respectively.
Upload, a clear breakdown of the mobile average of 100 periods in one -hour graphic in 19.43 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.
