- The USD/MXN falls this Wednesday from 17.21 to 17.09.
- The price of the Dollar remains firm against the main currencies but fails to defeat the Mexican Peso
- Focus on speeches by Fed members; Mexico's manufacturing indicator weakens in December.
The Mexican Peso keeps the pulse against the Dollar, causing the USD/MXN today, Wednesday, February 14, to fall to new lows of the day at 17.09 after having opened the day very close to the nine-day highs reached yesterday at 17.22.
The dollar prevails in much of the currency market on expectations of a delay in the Fed's rate cuts
The Dollar Index (DXY) has extended its advance from yesterday, reaching new three-month highs at 104.97 in European morning today. Market expectations for the start of the Federal Reserve's rate cuts continue to be delayed. For the March meeting, according to CME Group's FedWatch tool, the odds have dropped to a modest 8.5%, down from 35.8% in May. In June, the chances rise to 52.5%.
Focus on speeches by Fed members
After the opening of Wall Street, the focus this Wednesday is on the comments of several members of the Federal Reserve. Austan D. Goolsbee, president of the Chicago Fed, will speak at 14:30 GMT, while Michael S. Barr, Vice Chairman of Supervision of the Board of Governors of the Fed System, will give a speech at 21:00 GMT.
In Mexico, the National Institute of Statistics and Geography (INEGI) has presented the results of the Monthly Survey of the Manufacturing Industry. In December 2023, the year-on-year indicator has revealed that the number of people employed in the sector fell by 1.6% while hours worked fell by 1.9%. Real average salaries, on the other hand, grew by 5.1%.
INEGI has also published estimates on the evolution of the monthly indicator of private consumption, anticipating a year-on-year increase of 5.2% for December 2023 and a rise of 3.6% for January.
USD/MXN Price Levels
With the pair trading at the time of writing above 17.09, losing 0.59% daily, the initial support zone awaits in the 17.04/17.05 area, where this week's lows are. Below, the key level will be the psychological figure of 17.00. A break of this region will cause the USD/MXN to test 16.78, the 2024 low recorded on January 8.
On the upside, a surpassing of the weekly maximum reached yesterday at 17.22 can push the cross towards 17.28 first (February ceiling) and 17.38 later (this 2024 maximum).
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.
