The price of the Dollar retests 11-day highs near 18.40 against the Mexican Peso at the end of the week

• USD/MXN retests 11-day highs already reached yesterday around 18.40.
• The price of the Dollar oscillates around 106.25/30.
• Mexico awaits the publication of retail sales for August.

The USD/MXN remains firm for the third consecutive day. In the European morning on Friday, the pair has advanced from the 18.30 zone to return to touch 11-day highs already tested on Thursday at 18.39.

The price of the Dollar is cautious at the end of the week

He Dollar Index (DXY) remains cautious amid fears of a new military escalation in the conflict between Israel and Hamas. The greenback is trading around 106.25/106.30 at the end of the week, somewhat away from the week’s high reached yesterday Thursday at 106.67.

Without relevant data on the US agenda on Friday, the focus will be on the speech of Patrick T. Harker, a member of the Fed, before the Federal Reserve’s ‘silence’ period begins next week before the monetary policy announcement which will take place next Wednesday, November 1.

In Mexico, attention is focused on the August retail sales data, which is expected to rise 4.4% annually after growing 5.1% in July. Yesterday, the National Institute of Statistics and Geography (INEGI) published that the Timely Indicator of Economic Activity (IOAE) anticipated a 3% increase in the Global Indicator of Economic Activity (IGAE), somewhat below the 3.4% seen in August.

USD/MXN Price Levels

With the pair trading above 18.36, gaining 0.16% daily, the first resistance to beat would be the one located at 18.39maximum of October 19 and 20, followed by 18.49peak of the month of October recorded last day 6. Higher up I would expect the barrier located at the psychological level of 19.00.

On the downside, the round level of 18.00 would be the first support before being able to trigger a fall to 17.75, the weekly low recorded on October 12. A break below would target 17.60, the October 3 floor.