- USD/MXN falls 0.21% at the close of the American session, after reaching highs not seen since October 2022.
- The judicial reform will be discussed and voted on in the Senate next week.
- The US ADP employment report disappoints, coming in below analysts’ estimates.
- Investors will be focused on inflation data as well as consumer confidence in Mexico on Monday.
The USD/MXN marked a daily low at 19.88, attracting aggressive buyers who pushed the pair to a high not seen since October 2022 at 20.15. At the time of writing, the price of the US dollar against the Mexican Peso is trading at 19.90, losing 0.21%, at the close of the market.
The Mexican Peso plunges and reaches lows not seen since October 2022
Following the approval of the judicial reform in the Chamber of Deputies, the Mexican Peso reached lows not seen since October 2022. The USD/MXN surpassed the psychological barrier at 20.00, reaching a daily high of 20.15.
The Mexican Peso has lost 18.08% against the Dollar in 2024, surpassing the Argentine Peso, the Brazilian Real and the Turkish Lira as the most depreciated currency in the year.
The ADP US employment report reported an increase of 99,000 private sector jobs, well below the consensus expectation of 145,000.
Investors will be watching the development of judicial reform next week, when it is discussed and put to a vote in the Mexican Senate. The ruling party, Morena, requires an additional vote to have a qualified majority and approve a controversial reform that will allow the election of judges and magistrates by popular vote. Inflation and consumer confidence data for August will also be published next Monday.
Technical levels in the USD/MXN
The USD/MXN established a short-term support located at 19.42, in convergence with the 78.6% Fibonacci retracement. The next support is observed at 180.59, given by the pivot point of August 16. The closest resistance is found at today’s high of 20.15. The relative strength index is at 64.3, showing us that the buying pressure continues and remains firm with intentions of reaching higher prices.
USD/MXN Daily Chart
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.
