The price of the Dollar jumps to eight-day highs against the Mexican Peso after the Fed hangover

• USD/MXN has risen to eight-day highs at 17.25.
• The Dollar soars to 105.73, a new maximum of six and a half months
• US employment and manufacturing data offered mixed results, while Mexican retail sales improve expectations.

The USD/MXN fell at the European open to a daily low of 17.06 to begin gaining ground a few hours later. Following the release of US and Mexican data the pair shot up to eight-day highs at 17.25.

The Dollar prevails again, aiming for 106.00

He Dollar Index (DXY) has risen strongly this Thursday after digesting the conclusions of the Fed meeting. The USD measured by its DXY index has advanced towards 105.73, its highest level since March 8.

The Fed meeting left rates unchanged in the 5.5% range, but projections indicated that a new rate hike of 25 basis points is expected before the end of the year. Rate cuts totaling 50 basis points are expected by 2024.

Today, Thursday, the United States published its weekly unemployment benefit claims, which stood at 201,000 in the week of September 15, improving the expected 225,000 and the 221,000 of the previous week. The Philadelphia Fed manufacturing index, for its part, fell to -13.5 points in September, worsening the +12 in August and the -0.7 estimates. Finally, existing home sales fell 0.7% in August compared to -2.2% in July.

In Mexico, year-on-year retail sales grew 5.1% in July, above the expected 4.9% although below the 5.9% in June. The focus tomorrow will be on inflation in the first half of September.

USD/MXN Price Levels

With the pair trading at the time of writing above 17.21, gaining 0.72% on the day, the first resistance appears at 17.25top of the day, followed by 17.40, former upward barrier. Higher, the Dollar can shoot up against the Mexican Peso until 17.70ceiling of September 7 and the last three and a half months.

On the downside, the first downward support appears in the psychological zone of $17.00. A break of this zone could cause a strong downward movement towards 16.62, the almost eight-year low recorded on July 28.