The price of the Dollar loses momentum against the Mexican Peso as it approaches 18.00 after Powell’s hangover

• USD/MXN gives ground after rising to nine-day highs near the 18.00 area.
• Dollar price rebounds on all fronts after Powell’s hawkish comments
• Mexico industrial production improves expectations in September while University of Michigan consumer sentiment disappoints.

The USD/MXN has maintained this Friday the momentum received yesterday following the hawkish comments from Jerome Powell, president of the Federal Reserve. The price of the Dollar has reached new nine-day highs against the Mexican Peso at 17.94 at European noon, approaching the 6:00 p.m. zone. In the last few hours, the momentum has moderated and the pair is trading above 17.80 in the American session, losing 0.43% daily.

The dollar recovers ground supported by Powell’s comments

He Dollar Index (DXY) was strengthened by the Federal Reserve chairman’s hawkish comments during his appearance at an International Monetary Fund (IMF) panel. Jerome Powell stated that they are not confident that they have achieved a sufficiently restrictive monetary policy stance, pointing out that the Fed will not hesitate to tighten monetary policy if it is appropriate. These words hinted that new interest rate increases could still occur in the next meetings, which gave wings to the Dollar throughout the forex board.

The greenback has risen today, Friday 106.00, new one-week high. In the last few hours, the DXY has lost momentum and is trading above 105.90, showing flat on the day, but maintaining its upward trend in the short term.

The dollar has reached its maximum at 106.00 after the publication of the preliminary consumer sentiment index from the University of Michigan, which has fallen to 60.4 in November from 63.8 in October, its worst figure in six months. The data has disappointed the 63.7 estimated by the market.

Mexico published its interest rate decision yesterday, keeping them at 11.25%, as expected, and noting that they would remain at that level for some time. Today INEGI has published industrial production data for September, showing a growth of 0.2%, improving market expectations that forecast an increase of 0.1%.

USD/MXN Price Levels

In case of going up again, the first resistance appears in the psychological region of 18.00. A break of this level could take the USD/MXN to the barrier located around 18.15, the high area of ​​last week (October 30). Further up, an important containment area awaits between 18.42/18.49, October’s highest levels.

To the downside, the pair will find initial support at 17.45, minimum of November 7. A break lower will target 17.28, a six-and-a-half week low tested on November 3 after the NFP. Below, the region of 17.00/16.99 awaits, the psychological zone and the minimum of September 20, respectively.