- USD/MXN has risen to two-day highs at 16.82.
- The Dollar rebounds with the statements of the members of the Federal Reserve.
- Philip Jefferson, vice president of the Federal Reserve, is committed to keeping rates at high levels until there is an evident moderation in inflation.
USD/MXN retreated to a daily low of 16.73 before the start of the American session on Monday. Shortly after, the pair has risen to two-day highs at 16.82. At the time of writing, the cross is trading above 16.80, gaining 0.18% on the day.
The Dollar rebounds upwards with Philip Jefferson's statements
In the United States, the vice president of the Federal Reserve, Philip Jefferson, spoke today, who assured that he is in favor of maintaining interest rates at current levels until there is an evident moderation in price pressures.
The Dollar Index (DXY) fell before Jefferson's speech to a six-day low of 105.05, rising after it to the 105.15 area, although the rebound does not seem very consistent at the moment.
Without more data to be known today in the US, the focus will shift tomorrow to April production prices, which are expected to grow 2.2% annually compared to 2.1% in March. Wednesday will be key for the Dollar, since the United States will publish its inflation figures for April, expecting an increase of 3.4% annually compared to the previous 3.5%. The core CPI is expected to be 3.6% compared to 3.8% previously. That same day, retail sales data for April will also be released.
USD/MXN: Price levels
If it continues to advance, the USD/MXN will find initial resistance at 16.85, where the 100-day moving average is. Higher up awaits the psychological zone of 17.00, which during the previous months has been alternating between support and resistance.
On the downside, the first support awaits at 16.72, last week's low recorded on May 10. A break below around 16.50 may take the pair towards the 2024 and nearly nine-year low of 16.26 (April 9).
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.
