- USD/MXN rises to 17.41 after falling to twelve-day lows of 17.30.
- The price of the Dollar regains some momentum after the fall caused by the moderation of US inflation.
- US retail sales and producer prices improve prospects in October.
The UDS/MXN began the day on Wednesday accentuating the decline that followed the release of US inflation on Tuesday. The pair fell in the European morning to 17.30, a new twelve-day low. After the data on retail sales and production prices from the United States, which were better than estimated, the Dollar rose against the Mexican Peso to 17.41, a new daily ceiling.
The price of the Dollar takes a break after sinking to two and a half month lows
He Dollar Index (DXY) It fell yesterday to 103.98, its lowest price since August 31. The drop was caused by the moderation of US inflation data, which implies a probable end to interest rate hikes by the Fed. The price of the USD has managed not to extend its decline on Wednesday, gaining momentum after today’s US data, which has improved expectations. The DXY has bounced on the release, first falling to a daily low at 103.99 and then immediately rising to 104.39, a new daily high.
The United States Producer Price Index (PPI) rose 1.3% year-on-year in October, well below the 2.2% in September and the 1.9% estimated by experts. This is the lowest level of growth in three months, according to the Bureau of Labor Statistics. Excluding food and energy, the indicator grew 2.4% annually after growing 2.7% in September, its lowest growth rate in 33 months, specifically since January 2021. The figure is below market expectations, since that the increase was expected to remain at 2.7%.
The US retail sales fell 0.1% monthly in October compared to September’s 0.9% increase, improving the estimated 0.3% decline. Excluding vehicles, sales grew 0.1%, exceeding the 0% forecast.
USD/MXN Price Levels
With the USD/MXN trading at the time of writing above 17.39, gaining 0.22% daily, we would not see a reversal of the current bearish momentum until the resistance located in the 18.00 area is overcome. Above, the pair will find a barrier around 18.15, the two-week high zone (October 30). Further up, an important containment area awaits between 18.42/18.49, October’s highest levels.
On the downside, the main support stands between 17.30 and 17.28, the lows of today and November 3. Below, the region of 17.00/16.99 awaits, the psychological zone and the bottom of September 20, respectively.
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.
