- The USD/MXN is pressed downward for the fourth consecutive day.
- The US dollar is stabilized after the agreement between the US and Japan
- The attacks on the president of the Fed, Jerome Powell, prevent the dollar from moving forward against Mexican peso.
- The focus of investors will be in the inflation data of Mexico of the first half of the month that will be published on Thursday.
The USD/MXN is registering losses for the fourth consecutive day this Wednesday. The pair leans down while moving in a narrow rank located between a daily maximum of 18.68 and a minimum of 18.62. At the time of writing, the dollar is quoted in front of the Mexican peso over 18.63, losing 0.07% in the day.
The US dollar index is stabilized by minimum of two weeks after the agreement between Japan and the US.
The American dollar index (DXY) fell yesterday to its lowest level in two weeks at 97.30. A day later, the green ticket has stabilized but has not managed to recover despite the agreement reached between the US and Japan. As noted by the American president Donald Trump, Japanese products will pay a 15% tariff, below the 25% previously established. On the other hand, the Republican Executive has also made Japan commit to invest 550,000 million dollars in the US.
The main reason for the dollar drop these days is in the Fed and in the strong pressure that Trump’s government is exerting on its president, Jerome Powell. The threat to the independence of the US Federal Reserve causes uncertainty and fear in the markets, keeping USD under pressure. Yesterday, Trum accused the president of the Fed of being the culprit of the housing problems in the US and later said that he will not be renewed in office when he turns eight months of mandate that they remain. On the other hand, US Treasury Secretary, Scott Besent, today told Bloombert TV that there is no hurry to appoint the person who will replace Powell.
Focus on Mexico’s inflation data for the first half of July
Waiting to know some progress on negotiations between the US and Mexico to prevent Mexican products from paying tariffs of 30% from August 1, USD/MXN operators will focus their attention tomorrow on inflation data of the first half of July. Mexican consumption price index (CPI) is expected to grow 0.27% compared to 0.10%.
On the other hand, the National Institute of Statistics and Geography (INEGI) has published today the Statistics of the Mining Industry of Mexico. The indicator has shown that in May 2025 the production of the sector descended a monthly 0.5%, but increased 5.1% per year.
USD/MXN Price levels
He USD/MXN maintains its short, medium and long term. The 145 -day relative force (RSI) index is below 45 in a temporalities of one hour, four hours and one day, pointing to higher declines in the next few hours.
Downward, the first important support waiting in 18.55, minimum of 2025 and the last year reached on July 9. Below, the pair can descend around 17.60, July 2024.
Up, the USD/MXN will have to clearly overcome the resistance zone marked by the 100 -hour mobile average of one and four hours around 18.70 to be extended around 18.88, a ceiling of this month registered on the 15th.
Mexican peso – frequent questions
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.
