- USD/MXN is trading in a tight range above the 17.00 level on Monday.
- The People’s Bank of China (PBoC) has announced that it was lowering the prime rate on one-year loans to 3.45% from the previous 3.55%.
- The price of the dollar remains unchanged on Monday.
- During the week, investors’ attention will be on Mexico’s inflation and growth data and the Jackson Hole Symposium.
He USD/MXN moves within a narrow range on Monday, holding above the 17.00 levelvirtually unchanged on the day.
The price of the dollar recovers the initial losses
At the start of the American session, the DXY index is unchanged on the day around the 103.45 level. Earlier in the day the index had pulled back to the 103.14 region, though it has lacked any follow-on selling and has rallied.
Markets have started the new week quietly, with major currency pairs trading close to Friday’s closing levels, despite China’s central bank, The People’s Bank of China (PBoC) announced during the Asian session that it was lowering the prime rate on one-year loans to 3.45% from the previous 3.55%, while keeping the prime rate on five-year loans unchanged at 4.20%. Markets expected both rates to fall by 15 basis points.
Throughout the rest of the week, USD/MXN traders will be looking at S&P Global US Purchasing Managers’ Index (PMI) data, due for release on Wednesday, at inflation data for the first half of August in Mexico already Thursday’s US durable goods orders already the data of the Gross Domestic Product (GDP) of Mexico of Friday.
In addition, the most important focus of attention will be on the Jackson Hole Symposiumwhich starts on Thursday and ends on Saturday, where the world’s leading bankers will meet. Jerome Powellchairman of the US Federal Reserve, is scheduled to give a speech on Friday.
USD/MXN Price levels
He USD/MXN It is currently trading around 17.05, losing -0.03% on the day. A break of support and psychological zone of 17.00 could point towards the 7-year, 8-month low recorded on July 28 in 16.62.
On the upside, a breach of the daily maximum in 17.08 could target last week’s high near 17.21. Higher up there would be a barrier in 17.28, maximum of August 8. Above that level, momentum can reach 17.42, maximum of August 3 and 4. A break of this level could target the level 17.50.
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.
