- USD/MXN falls to 16.66 on Friday, placing it very close to the eight-month low reached on Thursday.
- The Dollar will close the week above the 103.00 zone if the US data does not cause a drop.
- The Monthly Indicator of Private Consumption of Mexico estimates an annual variation of 4.3% for January and 4.7% for February.
After yesterday's drop to an eight-month low of 16.64, the USD/MXN managed to rebound this Friday to a two-day high near the 16.74 area. The Dollar has failed to maintain momentum against the Mexican Peso and before the Wall Street open has fallen to a daily low of 16.66.
The Dollar remains above 103.00 pending industrial production and consumer confidence data from the University of Michigan
The Dollar Index (DXY) regained ground following mixed US data released yesterday. Retail sales grew less than expected and the Producer Price Index (PPI) rose more than expected, giving a boost to the greenback as the chances of persistent inflation delaying the Fed's first rate cut increase. In fact, the CME Group's FedWatch tool today places the probability of a first interest rate cut in June at 55.1%, compared to 59.8% yesterday.
DXY's momentum has taken it to a nine-day high of 103.48 in the Asian session on Friday. A few minutes before Wall Street opens, the Dollar Index is trading around 103.41, gaining a slight 0.04% on the day.
Traders of the pair will be very attentive in the coming minutes to the publication of US industrial production, which is expected to have stagnated at 0% in February after falling 0.1% in January. The most important data of the day, however, will be the University of Michigan's preliminary consumer sentiment index for March, which is expected to remain unchanged at 76.9 points. The five-year inflation expectations component of the indicator will also be important for the volatility of the Dollar.
The New York Empire manufacturing index was previously published, showing a sharp drop to -20.9 points in March from -2.4 seen in February, notably worsening the -7 points expected by the market.
In Mexico, the Monthly Private Consumption Indicator has been published, estimating an annual variation of 4.3% for January and 4.7% for February.
USD/MXN price levels
The USD/MXN is currently trading above 16.69, practically flat on the day. The pair remains immersed in a strong bearish trend, in danger of breaking the July 2023 low located at 16.62. A break below this key level could take it to 16.35, the November 2015 bottom, before landing in the psychological zone of 16.00.
On the upside, initial resistance is at 16.85, the week's high, and at the psychological level of 17.00.
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.