- The USD/MXN rises to maximum of the day on 19.04.
- The US dollar rises after the announcement of the Fed and the cautious tone of Jerome Powell.
- Donald Trump suggests that Iran could request an agreement.
The USD/MXN has turned positive after the announcement of the monetary policy of the United States Federal Reserve and the subsequent statement of its president, Jerome Powell. The caution in the words of the head of the Central Bank have driven the torque to a daily maximum of 19.04 after trying a minimum in the American opening in 18.94.
At the time of writing, before closing the session, the USD/MXN quotes about 19.01, winning 0.12% daily.
The US dollar rises to maximum one week thanks to Powell and Trump
The US dollar index (DXY) has risen to a week of one week at 99.01 after the decision of the United States Federal Reserve to leave its interest rates without changes in 4.5%. The speech of the president of the entity, Jerome Powell has been cautious, pointing to uncertainty which generates the impact that tariffs may have in the country’s economy and pointing to a depressed feeling. His words have removed the possibility of a rate of rates in July, which has driven the dollar. The CME Group Fedwatch tool only gives a 10.3% probability of a cut in the next meeting, increasing them to 66.5% in the September meeting.
The focus has also been in the points graph, the projections that the Fed makes every three months. The document places interest rates at the end of 2025 in 3.9%, as in the March projection, which implies that there are still two cuts of types of 25 basic points or one of 50 bp. In addition, the points graph has cut the GDP forecasts from 2025 to 1.4% from the previous 1.7% and has raised the 3% PCE inflation expectation this year from the previous 2.7%.
On the other hand, the US president Donald Trump has reported that he would hold a meeting tonight on Iran and Israel. The Republican has pointed out that he has not closed the door to a meeting with Iran, noting that Iranian representatives want to go to the White House.
USD/MXN Price levels
The relative force index (RSI) of 14 has risen above 50 in short and medium term temporalities, pointing to an extension of the USD/MXN rise in the next few hours.
The initial resistance appears in the area of ​​99.10/12, where the maximums of last week and the 100 -hour graphic average are. Above, the goal is in 19.78, May roof.
Downwards, the first support is located in the 18.96/18.94 area, where is the mobile average of 100 periods in one -hour graph and the minimum of the day, respectively. Below, the USD/MXN will find a retaining wall in 18.82, land of 2025 and the last ten months reached on June 16. A rupture of this level would point to the 18.60 zone, where the minimums of the end of August are.
USD/MXN 4 -hour graphic
Mexican weight FAQS
The Mexican weight (MXN) is the most commercialized currency among its Latin American peers. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even remittance levels sent by Mexicans living abroad, particularly in the United States. Geopolitical trends can also affect MXN: for example, the Nearshoring process (or the decision of some companies to relocate the manufacturing capacity and supply chains closer to their countries of origin) is also considered a catalyst for the Mexican currency, since the country is considered a key manufacturing center in the American continent. Another catalyst for MXN is oil prices, since Mexico is a key exporter of the raw material.
The main objective of the Central Bank of Mexico, also known as Banxico, is to maintain inflation at low and stable levels (in or close to its 3%target, the midpoint of a tolerance band between 2%and 4%). To do this, the bank establishes an adequate level of interest rates. When inflation is too high, Banxico will try to control it by raising interest rates, which makes the indebtedness of homes and companies more cooling, thus cooling the demand and the economy in general. The highest interest rates are generally positive for Mexican weight (MXN), since they lead to higher yields, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the MXN.
The publication of macroeconomic data is key to evaluating the state of the economy and can have an impact on the valuation of the Mexican weight (MXN). A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only attracts more foreign investment, but it can encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this fortress is accompanied by high inflation. However, if the economic data is weak, the MXN is likely to depreciate.
As an emerging market currency, the Mexican weight (MXN) tends to rise for periods of risk, or when investors perceive that the general market risks are low and, therefore, are eager to participate in investments that carry a higher risk. On the contrary, the MXN tends to weaken at times of market turbulence or economic uncertainty, since investors tend to sell higher risk assets and flee to the most stable safe shelters.
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.
