- The USD/MXN rises to two days at 18.99.
- The US dollar records slight profits despite the disappointing retail sales and industrial production data in the United States.
- Donald Trump leaves the G7 summit, annuling the meeting with Mexican president Claudia Sheinbaum.
After falling to new minimum of ten months in 18,8241 on Monday, this Tuesday the USD/MXN has regained ground, approaching before the American opening to the 19.00 zone. After touching a maximum of two days in 18.99, the PAR is quoted in the US session over 18.96, winning 0.28% in the day.
The dollar advances cautiously despite the weak US data
The dollar index (DXY) remains positive in the day, winning 0.19% in 98.32. The caution of the market in the face of the escalation of attacks between Israel and Iran has stopped the fall of the dollar, which has not just convinced operators as a safe refuge value, but it is not ruled out either.
The green ticket is held despite the disappointing data published today in the United States. The Retail sales fell 0.9% monthly in Mayworsening the decrease of 0.7% expected, while Industrial production decreased 0.2% In the same month, disappointing the estimated 0.1% increase.
On the other hand, the NAHB real estate market index for June has dropped to 32 From the 34 points of May, standing below the 36 scheduled. This is your worse record since December 2022.
Without taking the view of the conflict between Israel and Iran, the focus of the operators will now turn to the Fed, that Tomorrow Wednesday will announce its monetary policy decision although variations in interest rates are not expected. The key will be in the points chart, since a review of the projections with respect to March could generate volatility in the USD/MXN.
Claudia Sheinbaum will still be face to face with Trump
The expected meeting between the Mexican president, Claudia Sheinbaum, and her American counterpart, Donald Trump, will not take place, which has weighed on the Mexican weight. The decision of the US president to leave the G7 summit last night He has left Sheinbaum without the face -to -face encounter with Trump, in which key issues such as the controversies raised against Mexican migrants in the US, taxes on remittances and steel tariffs were going to be discussed.
Although today there will be no meeting with Trump, the Mexican president was able to present yesterday in the Canadian city of Calgary the ‘Plan Mexico’ that aims to obtain investments in infrastructure and energy transition for the country.
USD/MXN Price levels
Despite the rebound of the USD/MXN, the General tendency to continue firmly bassist, although the relative force index (RSI) of 14 in time graph points to an extension of the short -term rise.
The initial resistance appears in the psychological zone of 19.00. If exceeded, the next barrier will appear in the area of ​​99.10/11, where the maximums of last week are, before heading around 19.78, May roof.
Down, the first support is found in 18.93, where is the 100 -hour -graphic mobile average. Below, the USD/MXN will find a retaining wall in 18.82, minimum of 2025 and the last ten months tested yesterday and Monday, June 11. A rupture of this level would point to the 18.60 zone, where the minimums of the end of August are.
USD/MXN 1 hour graphic
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.
