- USD/MXN has fallen to new nine-day lows in the $18.00 area.
- The price of the Dollar retreats to a two-day low near 106.30.
- US core PCE moderates to 3.7% in September as Mexico widens trade deficit
After reaching a one-week high yesterday at 18.42, the USD/MXN has experienced a sharp decline today that has taken it to nine-day lows in the psychological zone of 18.00 following the publication of economic data from the US and Mexico .
The price of the dollar loses strength ahead of the weekend
He Dollar Index (DXY) It hit a daily high of 106.80 after European midday, approaching a three-week high near 106.90 reached after yesterday’s upbeat US growth data. However, the Dollar has not been able to maintain the momentum and following the US Core PCE data and the University of Michigan Consumer Sentiment has fallen to two-day lows at 106.32. At the time of writing, the greenback is trading above 106.51, losing 0.10% daily.
The University of Michigan Consumer Sentiment Index has fallen 4.3 points in October, falling to 63.8 from 68.1 points in September. Despite the fall, the indicator improves the consensus forecasts, which expected a decline to 63.0.
This is the worst result recorded in the last five months, specifically since May. Furthermore, this is the third consecutive decline for the indicator. The University of Michigan’s 5-year consumer inflation expectation component has risen to 3% from 2.8% previously, meeting expectations.
For its part, the US annual core PCE has moderated by one tenth in September, reducing to 3.7% from the previous 3.8%.
In Mexico, the trade balance widens its deficit to -1,481 million dollars in September compared to -1,377 million in August. The result worsens market expectations, since an improvement to -712 million dollars was expected.
USD/MXN Price Levels
The USD/MXN is currently trading around 18.07, losing 0.46% on the day. A Break below the key 18.00 level could trigger a decline towards 17.75, weekly minimum of last October 12. Further down, a support zone awaits around 17.37/17.34, where the October minimum recorded on day 2 and the bottom of September 29 is.
To the upside, the area between 18.46/18.49 continues to be the main resistance, as it contains the October highs recorded on October 20 and 6, respectively. Higher up I would expect the barrier located at the psychological level of 19.00.
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.