- The USD/MXN operates on Friday, October 13 in a range of 15 points between 17.99 and 17.84.
- The price of the Dollar reaches one-week highs at 106.75.
- University of Michigan consumer sentiment worsens expectations in October advance reading.
The USD/MXN has moderated its momentum on the last day of the week after reaching a three-day high of 18.08 on Thursday driven by the rise of the Dollar following the US inflation figures. Today, Friday, the pair has operated in a narrow range of 15 points located between 17.99 and 17.84.
The price of the Dollar continues to advance after the US CPI.
The Dollar continues to rise after the rebound experienced yesterday following the US inflation data. The headline CPI rose 3.7% in September, above the expected 3.6%, while core inflation fell to 4.1% from 4.3% previously. The markets interpreted that with these figures the United States Federal Reserve will leave interest rates high for a prolonged period of time, and may even announce a new rate increase before the end of the year.
The Dollar Index (DXY) just rose to 106.75, its highest level in a week. The increase comes just after the release of the University of Michigan’s consumer sentiment index, which has fallen to 63 points in the preliminary reading for October from 68.1 in September. The figure is the worst in five months and disappoints market expectations, which expected a slight reduction to 67.4. In addition, the component most followed by the Fed on this indicator, five-year inflation expectations, has risen to 3% from the previous 2.8%, giving more strength to the market thesis about keeping rates high or raising them one last time. .
Looking ahead to next week, traders will be watching market sentiment and retail sales data from the US and Mexico, which will be published on Tuesday the 17th and Friday the 20th, respectively.
USD/MXN Price Levels
With USD/MXN trading at the time of writing above 17.96, down 0.11% daily, a clear break above the 18.00 zone could target resistance at 18.30, October 11 high, before heading towards 18.49/50 , ceiling of October 6.
Below 17.75, the weekly low recorded on October 12, the first important support appears at 17.60, the floor of October 3. Below, the target will be at the intermediate level around 17.35, the lowest level of September 29. A break of this zone will target the 16.99/17.00 zone, September 20 low and psychological zone, respectively.
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.
