- USD/MXN has risen to daily highs of 16.74.
- Dollar rebounds after disappointing US data
- US weekly jobless claims improve less than expected.
The USD/MXN is trading this Thursday in a very narrow range delimited by 16.67 on the downside and 16.74 on the upside. At the time of writing, the pair is trading above 16.70, gaining 0.11% on the day.
Dollar gains momentum after disappointing US data
The United States today published a series of mid-level data that presented disappointing results. First, weekly jobless claims for the week of May 10 have fallen to 222,000 from 232,000, but are slightly above the estimated 220,000. On the other hand, the Philadelphia Fed manufacturing index for the month of May has fallen 11 points in May, falling to 4.5 from 15.5, well below the 8 expected by the market. Finally, industrial production stagnated in April, disappointing the expectation of a 0.1% increase.
The Dollar Index (DXY) has reacted higher following the data, rising to a daily high of 104.63. The rally is considerable considering that the DXY opened the day around 104.08.
Following the publications, CME's FedWatch tool has placed the options of a first rate cut in September at 50.5%.
In Mexico, the National Institute of Statistics and Geography (INEGI) has presented the results of the Timely Indicator of Private Consumption (IOCP). For March 2024, the indicator estimates an annual increase of 4% and for April 2.9%.
USD/MXN Price Levels
If it continues to rise, the first resistance awaits at 16.77, where the moving average of 100 is. The next barrier will be in the psychological zone of 17.00 before 17.39, the ceiling of April 25.
On the downside, this week's low at 16.64 will be the first support to break followed by 16.50/16.55. The bottom of 2024 and the last almost nine years at 16.26 will be the strongest point of containment in case of a further decline.
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.
