- USD/MXN hit a one-month high of 17.13 in the European open, but has fallen to a daily low of 16.91 in the American session.
- The dollar lost ground after the publication of US GDP data and weekly unemployment benefit claims.
- Mexico's unemployment rate rose to 2.6% in April, in line with expectations.
USD/MXN soared to a one-month high of 17.13 at the start of European trading on Thursday, but subsequently lost ground until falling to a daily low of 16.91 after the Wall Street open. At the time of writing, the pair is trading above 16.94, down 0.21% on the day.
Dollar loses momentum after US data release
The Dollar Index (DXY) has been falling since midday in Europe, but has accentuated its decline after learning that the preliminary GDP for the first quarter of the United States grew by 1.3%, in line with expectations, and that weekly requests unemployment benefits increased to 219,000 in the week of May 24 compared to the estimated 218,000. The DXY has fallen to intraday lows of 104.72 after starting the day at a 16-day high of 105.18.
CME Group's FedWatch tool currently projects a 49% chance that the US Federal Reserve will leave its interest rates unchanged at its September meeting. For November, the options of keeping rates at 5.5% are 35.8%, while in December they drop to 17.7%.
Elsewhere, Mexico released its April unemployment rate today, showing a rise to 2.6% in April from 2.3% in March, its highest rate in three months. The figure is in line with expectations.
Operators will be waiting tonight for the publication of Mexico's federal fiscal balance and tomorrow for inflation PCE of the US for the month of April.
USD/MXN Price Levels
Despite the correction in the last hour, USD/MXN is within a bullish channel on the one-hour chart. If the pair surpasses its high since April 30 at 17.16, the next bullish barrier will be at 17.39, the April 25 ceiling. Above, the target will be in the psychological zone of 18.00.
Heading south, a break of Tuesday's four-day low at 16.63 will take USD/MXN towards the 16.52 support zone, the May 21 low zone. Below it expects 16.26, the 2024 floor recorded on April 9.
USD/MXN One 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.
