- USD/MXN rises to daily highs at 16.71.
- The price of the Dollar has strengthened after the good data on US retail sales.
- Mexico will publish its February retail sales next Friday.
The USD/MXN has staged a strong rebound from European midday to the beginning of the American session that has taken it from a daily low of 16.54 to a daily high of 16.71. At the time of writing, the pair is trading above 16.69, gaining 0.32% so far this day.
The price of the Dollar soars to new five-month highs with good US retail sales figures.
The Dollar Index (DXY) has jumped to new highs since November at 106.22 driven by good US retail sales data. The greenback has strengthened across the forex board, also supported by the growing possibility that the Federal Reserve will cut its interest rates for the first time in September.
US retail sales rose 0.7% monthly in the month of March, above the 0.3% expected. In addition, the control group indicator increased 1.1%, recording its largest increase in fourteen months.
On the other hand, CME Group's FedWatch tool has lowered the options for a Fed rate cut in June to 16.4%. In July, the possibilities stand at 37.1%, while in September they rise to 44.8%. The more than possible delay in the US central bank's rate cut continues to strengthen the Dollar at the beginning of the third week of April.
In Mexico, the National Institute of Statistics and Geography (INEGI) today published its Monthly Survey of the Manufacturing Industry, showing that in February, employed personnel in the manufacturing sector fell 0.2% monthly and 1.5% annually. Salaries, on the other hand, rose 1% monthly and 4.9% annually.
The strong data of the week for the Mexican Peso will be February retail sales to be released on Friday. In February, the indicator registered a drop of 0.6% monthly and 0.8% annually.
USD/MXN Price Levels
On the hourly chart, the USD/MXN trend has turned bullish, although in longer time periods the strong bearish trend of recent months persists.
After reaching a new April high at 16.74 last Friday, the pair will encounter a first hurdle to the upside in that region. Exceeding this ceiling could take the pair towards the psychological zone of 17.00, key to betting on a firmer recovery if it is exceeded.
On the downside, the break of the almost nine-year low of 16.26 recorded on April 9 would point to 16.10/15, where the August 2015 lows are. Below it awaits the strong psychological region of 16.00 before falling to 15.63, bottom July 2015.
USD/MXN One Hour Chart
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USD/MXN Daily Chart
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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.
