- The USD/MXN records profits on Thursday after losing more than 2.85% at the end of Wednesday.
- The US dollar loses impulse with the softening of US inflation but remains up to the Mexican peso.
- The consumption price index (CPI) of the United States has moderated to 2.4% per year in March, below the expected 2.6%.
- The focus now turns to the minutes of Banxico and the comments of several members of the Fed.
The USD/MXN records profits on Thursday after suffering a sharp fall on Wednesday after the announcement of Donald Trump of Pausar the reciprocal tariffs for 90 days. The pair has opened today, testing a daily minimum in 20.23, but subsequently has gained ground, rising in the last hour to a maximum of the day in 20.48.
At the time of writing, the US dollar is quoted in front of the Mexican peso over 20.42, winning 0.89% in what we have been working on.
The US dollar falls to a minimum of a week after the moderation of US inflation.
The American dollar index (DXY) has fallen strongly after knowing that The United States inflation has risen 2.4% annually in Marchbelow 2.8% of February and 2.6% expected. In addition, the underlying consumer price index, which excludes volatile elements such as food and energy, has moderated 2.8% from the previous 3.1%, improving the estimated 3%.
The dollar measured by its DXY index has precipitated to a minimum of seven days in 101.48 after the publication, and at this time it loses 1.33% around 101.62.
The Inflation drop can induce the United States Federal Reserve to lower interest rateswhat weighs on the dollar. According to the CME Group Fedwatch tool, the probabilities of a cut in May are now 19.5%, while in June they shoot at 81.9%.
The focus now turns to the comments of several members of the Federal Reserve of the United States, who will speak in the next few hours, being able to give clues about the steps to be taken for the Central Bank at the next meetings. Specifically, today Michelle Bowman, governor of the Federal Reserve Board, Austan Goolsbee, president of the Fed of Chicago, and Patrick Harker, president of the Fed of Philadelphia, will speak today.
Banxico minutes in the spotlight
At 15.00 GMT, Banxico will publish the minutes of its March meetingwhich will give more details about the decision to cut interest rates in 50 basic points up to 9%. Banxico minutes can also offer clarity about the entity’s performance at the meeting on May 15.
Yesterday Wednesday, Trump clarified that for now the base level of 10%tariffs will not apply. On the other hand, the Mexican government announced yesterday that it prepares an investment of 32,865 million dollars to achieve electrical self -sufficiency.
USD/MXN Price levels
According to the relative force index (RSI) of 14, the USD/MXN has space to continue reputing in long -term graphics, but points to a pause in the advance in the short term. The most vulnerable support in case of recoil is in the mobile average of 100 periods in one day graph at 20.38. Below awaits the minimum of the week registered yesterday in 20.16 and the psychological zone of 20.00.
Upwards, the first resistance is the moving average of 100 periods in the graph of an Hroa around 20.61. If this level is exceeded, the torque can extend profits towards the region of 21.00 and subsequently point to 21.08, April roof.
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.