- USD/MXN shoots to 2.5-week highs at 16.74.
- The price of the Dollar rises sharply against the main currencies driven by the more than likely delay of the Fed's rate cuts.
- The 5-year inflation component of University of Michigan Consumer Sentiment rises to 3%, its highest level in five months.
USD/MXN staged a strong rally on Friday, shooting from a daily low of 17.42 to a two-and-a-half-week high of 17.74. At the time of writing, the Dollar is trading against the Mexican Peso above 16.71, gaining an impressive 1.70% daily.
The price of the Dollar reaches its highest level in more than five months due to the possible delay of the first rate cut by the Fed
He Dollar Index (DXY) arrives in the American session on Friday at its highest level since November 3, 2023 at 106.10. The greenback closes a week positively marked by inflation data from the United States, whose result, higher than expected, pushed the USD to highs not seen in more than five months.
The persistence of inflation has caused markets to price in a significant delay in the first interest rate cut by the US Federal Reserve (Fed). Fed officials could decide to postpone a decision that was expected to take place in June. As the week nears the end, the CME Group's FedWatch tool forecasts only a 26.2% chance that the entity will act in June. The options for the July meeting rise to 43.5%, while the probability of a first rate cut in September, with 44.5%.
Adding more fuel to the fire, the data Consumer Sentiment from the University of Michigan reported today that consumers' 5-year inflation expectation has risen to 3% in the preliminary reading for April from 2.8% in March, reaching its highest level in five months.
USD/MXN Price Levels
The price of the USD/MXN now points to an upward trend in very short-term time charts, although it remains immersed in a clear bearish channel in broader time periods, taking into account that this Tuesday, April 9, it fell to its lowest level since 2015 at 16.26.
After reaching a new high for the month of April at 16.72, the pair will encounter a first upward obstacle at 16.77, the ceiling of the last week of March. Breaking this area could take it towards the psychological level of 17.00, which will be essential to overcome to bet on a firmer recovery.
In case of giving ground again, the break of the almost nine-year low at 16.26 registered 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 at 15.63, July 2015 floor.
USD/MXN 15-minute chart
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.