The price of the Dollar rises to daily highs above 17.15 against the Mexican Peso

• USD/MXN hits a daily high at 17.17.
• The Dollar Index (DXY) maintains its bullish profile at the start of the week.
• Tomorrow the focus will be on consumer confidence in Mexico for the month of August.

USD/MXN has started the week testing a daily low of 17.04 at the European open. Subsequently, the pair has begun to recover ground, rising to 17.17, a new high of the day, in the early stages of the American session.

The dollar maintains its gains

The risk aversion climate that dominates the markets due to fears of an economic slowdown favors the dollar against other currencies. He Dollar Index (DXY) remains strong after hitting three-month highs near 104.45 last week. The greenback has managed to open this Monday above 104.00, subsequently reaching a daily ceiling at 104.27. Although at time of writing the DXY is trading above 104.06, down 0.20% on the day, the trend remains clearly bullish for the USD.

With the US markets closed for the Labor Day holiday, traders will be watching the market’s mood before the release of Mexico’s consumer confidence data for the month of August tomorrow. On Friday, the credit bureau Moody’s revised upwards its forecast for Mexican GDP growth, raising it to 3.3% for this year from the previous 2.4% in view of the good dynamism of its economy. On the other hand, the Banco de México reported that the country received a record of 35,895 million dollars in remittances in the first seven months of 2023which represents an increase of 9.4% compared to the same period of the previous year.

USD/MXN Price levels

With the USD/MXN currently trading above 17.15, gaining 0.38% daily, the first resistance appears at 17.20, ceiling of Friday, September 1. Above this region, the pair could move higher. 17.42where are the August highs reached in the first week of that month.

In the event of a reversal, a clear break in the psychological zone of 17.00 could accelerate descent to support 16.70/68, minimum of August 31 and 28, respectively. Underneath, the target would be at 16.62nearly eight-year-old soil tested on July 28.