- USD/MXN fell during the European session to almost eight-week lows at 17.19.
- The price of the US Dollar retests weekly lows around the 104.00 zone.
- US housing data improves expectations.
He USD/MXN declines for the fifth consecutive session this week. On European Friday morning, the pair has fallen to 17.19, new low since September 25. Although it has tried to rebound after the opening of Wall Street, the momentum has been limited around 17.25.
The price of the Dollar remains under downward pressure at the weekly close
He Dollar Index (DXY) has fallen this Friday to 104.01, minimum of two days tested yesterday. The greenback has reached the weekly close almost touching the eleven-week low reached on Tuesday, November 14 at 103.98. The USD weakened sharply at the beginning of the week coinciding with the publication of US inflation data, which moderated more than expected, leading the market to anticipate that the Fed would not announce a new interest rate hike.
The week closed with some housing data in the United States and with several statements from members of the Fed. Housing starts rose 1.9% monthly in October while construction permits grew 1.1%, both above expectations . Besides, Michael Barrvice chairman of supervision at the Federal Reserve, said in a hearing that “we are likely at or near the peak when it comes to interest rates.” Mary Dalypresident of the San Francisco Fed, noted that “high risks and murky economic conditions mean the Federal Reserve must practice gradualism.”
USD/MXN Price Levels
With the Dollar trading against the Mexican peso around 17.22, losing 0.11% on the day, the next support in case of a downward trend will be in the 17.00/16.99 zone, psychological zone and floor of September 20, respectively. Below this level, the target will be 16.70, the bottom of August 31.
To the upside, there is first resistance around 17.40, the November 14 high. Above, this week’s top around 17.70/17.72 will be the next resistance before attacking the 18.00 psychological zone. Above, the pair will find a barrier around 18.15, the two-week high zone (October 30).
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.