- The USD/MXN rebuves to a maximum of two days in 20.41.
- The US dollar earns land again backed by Donald Trump’s new comments on tariffs.
- Mexico will publish tomorrow its December retail sales data and the Minutes of Banxico.
The USD/MXN has opened Wednesday’s European morning testing the minimum of four weeks reached yesterday at 20.20. Subsequently, the torque has gained traction, raising before the opening of Wall Street at a maximum of two days in 20.41.
The US dollar is recovered with Trump’s new comments on tariffs
The American dollar index (DXY) rises at the opening of the American session on Wednesday to 107.24, its highest level in six days. The green ticket has been promoted by the new comments of the president of the United States, Donald Trump, who has assured that he plans to impose 25% tariffs on cars, semiconductors and pharmaceutical products. Although it did not provide more concrete details, it did reveal that it could be implemented around April 2.
The United States has published several housing data today, with mixed results. On the one hand, the Starts of housing have fallen 9.8% in Januarysliding to 1,366,000 from 1,515,000. The figure worsens the 1.4 million planned by the market. On the other hand, construction permits increased 0.1% in the same month, rising to 1,483,000 from 1,482,000 and exceeding 1,460,000 estimated.
The operators now expect the key report of the FOMC minutes of the meeting that the Federal Reserve held on January 29. Fed minutes can offer new clues about the decision to maintain interest rates without changes in the first meeting of the year.
USD/mxn levels
With the USD/MXN, quoting when writing about 20.40, winning 0.75% daily, the relative force index (RSI) of 14 in one -hour graph suggests that the upward movement could be about to run out, starting a setback .
Upwards, the initial resistance awaits in 20.42, maximum of the week tested on Monday, February 17. Above, the main barrier is at 20.70, a roof tested several times in the first part of February. A rupture above this region would lead to the 21.00 zone.
In case of retreating, the first support appears in 20.20, today’s soil and the last three and a half weeks. Below this area, the USD/MXN can find containment in 20.13, minimum of 2025 registered on January 24. Below awaits the psychological zone of 20.00.
FAQS tariffs
Although tariffs and taxes generate government income to finance public goods and services, they have several distinctions. Tariffs are paid in advance in the entrance port, while taxes are paid at the time of purchase. Taxes are imposed on individual taxpayers and companies, while tariffs are paid by importers.
There are two schools of thought among economists regarding the use of tariffs. While some argue that tariffs are necessary to protect national industries and address commercial imbalances, others see them as a harmful tool that could potentially increase long -term prices and bring to a harmful commercial war by promoting reciprocal tariffs.
During the election campaign for the presidential elections of November 2024, Donald Trump made it clear that he intends to use tariffs to support the US economy. In 2024, Mexico, China and Canada represented 42% of the total imports of US Therefore, Trump wants to focus on these three nations by imposing tariffs. It also plans to use the income generated through tariffs to reduce personal income taxes.
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.
