- USD/MXN hit a six-month high at 18.21 during the European open.
- The price of the Dollar takes a breather and tests levels below 107.00.
- Mixed US data has pulled the pair back towards around 18.00.
The Dollar strength boosted USD/MXN in the early part of Wednesday, raising it to 18.21, its highest level in six months. The pair gave up gains after the disappointing ADP US private employment data, then falling to 17.83, a daily low. After the ISM services PMI, the Dollar is around the 18.00 area against the Mexican Peso.
The price of the Dollar takes a break and returns below 107.00
He Dollar Index (DXY) reached 107.34 yesterday, new eleven-month high, since November 2022. Today, Wednesday, the upward trend continues but the price has taken a breather, falling after the US employment ADP to 106.51, a two-day low. At the time of writing, the services PMI in line with expectations has pushed it back to around 107.00.
The ADP private employment index showed that the United States generated 89,000 jobs in September, well below the estimated 153,000 and 180,000 in August. The figure set the dollar back against its main rivals, although it later recovered ground with the ISM services PMI, which moderated to 53.6 in September compared to the previous 54.5, but met expectations and remained in expansion territory for the ninth month. consecutive.
Tomorrow, Thursday, the market’s focus will be on Mexico’s consumer confidence data for September and the weekly unemployment claims from the United States. Traders also have their sights set on Friday, when the US releases its September Non-Farm Payrolls numbers. The number of jobs is expected to be at 170,000, down from 187,000 in August.
USD/MXN Price Levels
The price of USD/MXN is currently trading at 18.02, losing 0.26% daily. A clear break above the high zone at 18.22/21 could trigger a rise towards the resistance 18.40, maximum for the month of April. Higher up, the psychological level of 19.00 awaits, followed by the region between 19.20/30, where the ceilings of March and February of this year are.
On the downside, initial support is at 17.60, daily soil. Below, the 17.35 zone awaits, where Friday’s minimum is. Below, 17.10, the low of September 22, would have to be broken to fall towards the round level of 17.00.
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.
