- USD/MXN rises 0.95%, reaching highs not seen since September 11.
- Donald Trump threatens to impose tariffs on cars from Mexico entering the United States.
- The International Monetary Fund (IMF) cuts its growth prospects for Mexico in 2024.
USD/MXN set a session low at 19.67, finding aggressive buyers that took the pair to 5-week highs at 19.74. Currently, the US dollar trades above 19.90 against the Mexican Peso, gaining 1.04% daily.
The Mexican peso is pressured downwards due to low growth projections from the IMF
The International Monetary Fund decreased the economic growth prospects for Mexico in 2024, from 2.4% to 2.2%. This downward adjustment is due to a moderation in demand, which is a reflection of the economic slowdown in the United States. The agency increased its economic growth projections from 1.4% to 1.6% for 2025.
On the other hand, former president and presidential candidate Donald Trump indicated that he will seek to impose tariffs of more than “100, 200 or even 300%” on Mexican cars entering the United States with the intention of avoiding a further weakening of the automotive industry. US. These statements increased selling pressure on the Mexican peso, dragging it to five-week lows not seen since September 11.
Technical levels in the USD/MXN
USD/MXN established short-term support at 19.24, given by the October 14 low. The next support zone is located at 19.06, the pivot point of September 18, the area where the most recent bullish movement originated.
We observe the key resistance at 20.14, given by the maximum of September 11. The Relative Strength Index is at 77.94, entering the oversold zone, so a decline in the short term cannot be ruled out.
USD/MXN 4-hour 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.
