The Dollar falls to a five-and-a-half-week low against the Mexican Peso

• The USD/MXN falls to its lowest level since April 12 at 16.52.
• The Dollar rebounds with the statements of Raphael Bostic and Christopher Waller, members of the Fed.
• FOMC Minutes and Mexican inflation and GDP data could trigger volatility in the pair.

The USD/MXN is falling for the third consecutive day. Although the pair has moved in a very narrow range this Tuesday, the slight bearish movement has led it to set a new five-and-a-half-week low at 16.52. At the time of writing, the pair is trading above 16.55, flat on the day.

The Dollar rises to two-day highs after statements by members of the Federal Reserve

The Dollar Index (DXY) has rebounded in the last hour, rising to 104.76 points, its highest level since Friday, May 17. The index's rally has come after hawkish comments from Raphael Bostic and Christopher Waller, both members of the Fed. bosticpresident of the Atlanta Federal Reserve, has signaled that the central bank should be cautious about its first monetary policy move, noting that I wouldn't expect an interest rate cut before the fourth quarter. For its part, Wallergovernor of the Fed, has declared that a few consecutive months of good inflation numbers are needed before supporting a shift in monetary policy.

Comments are expected later in the day from Loretta Mester and Susan M. Collins, presidents of the Cleveland and Boston Fed, respectively.

Later in the week, the focus will be on Wednesday's Fed Minutes, and Mexico's early May inflation data, which will be released alongside first quarter GDP on Thursday.

USD/MXN Price Levels

The pair remains immersed in a descending channel on the hourly chart. A break of the current low at 16.52 could trigger a bearish move towards 16.26, the 2024 low recorded on April 9. Below this level, the main support would be in the 16.07/16.00 zone, where the August 2015 bottoms and the psychological zone are respectively.

To the upside, the first resistance appears at the 100 moving average at 16.64. Above, there will be intermediate resistance at 16.90, last week's top, before gaining momentum to the main barrier at the psychological zone of 17.00.