- USD/MXN falls to new 8-year, 3-month lows at 16.50.
- The Dollar continues to weaken following the disappointing US Services ISM and Jerome Powell's comments.
- Mexico's consumer confidence rises to 47.3 in March.
USD/MXN started Thursday trading below 16.56. After the opening of Wall Street, the pair has fallen to 16.50, its lowest level since December 2015.
The dollar weakens across the forex board
The dollar has weakened against almost all its counterparts after the disappointing ISM services PMI data published yesterday and the words of the speech of Jerome Powell, president of the Fed, who said that if the economy evolves as it has until now, all Members of the entity see it likely to start cutting rates at some point this year.
The Dollar Index (DXY) has plummeted today from 104.26 to 103.91, its lowest level in two weeks. Meanwhile, the odds of an interest rate cut in June continue to decline. CME Group's FedWatch tool now places them at 55.5%.
Today the US published weekly jobless claims for the week of March 29, showing an increase of 9,000 to 221,000 from the previous 212,000, worsening expectations of 214,000. The US trade balance has widened its deficit to $68.9B in February from -67.6B in January, worsening the -67.3B consensus estimate.
The pair's operators will now be awaiting the US Non-Farm Payrolls data that will be published tomorrow, Friday, as it could cause new movements in the Dollar. The market expects 200,000 new jobs compared to 275,000 the previous month.
For its part, Mexico's National Institute of Statistics and Geography (INEGI) has revealed that consumer confidence improved to 47.3 points in the seasonally adjusted reading, its highest level since February 2019.
USD/MXN Price Levels
With the pair currently trading above 16.52, losing 0.08% daily, the trend is bearish in all periods in the short, medium and long term. The first level of containment is at 16.47, the low of December 2015. A break of this level could trigger a fall towards the containment area around 16.35, where the lows of September, October and November 2015 meet.
On the upside, a recovery above 16.77, last week's high, is still necessary to advance towards the resistance located at 16.94, the March 19 high. Above I would expect the strong psychological 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.
