- USD/MXN rises to two-day highs at 17.42.
- The price of the Dollar reaches its highest level since November 23.
- US factory orders fall 3.6% vs. 2.6% decline estimated.
The USD/MXN begins the week gaining traction after falling last Friday, December 1, to 17.16, a three-day low. After the opening of Wall Street, the price of the Dollar rises against the Mexican Peso to 17.42, a new daily ceiling.
ANDThe price of the Dollar recovers in the face of the climate of risk aversion
The climate of risk aversion that dominates the markets this Monday is favoring the resurgence of the Dollar as a safe haven value. The DXY Index that measures the greenback has just jumped to 103.85, its highest level in eleven days, specifically since November 23.
In the United States, the data for factory orders, which have shown a drop of 3.6% in October, worsening the 2.6% decline expected by the market. This is the largest decrease recorded by the indicator since April 2020, in the middle of the first wave of the covid pandemic.
In Mexico, the National Institute of Statistics and Geography (INEGI) has published the results of the Monthly Indicator of Private Consumption (IMPC), which has registered an increase of 0.8% in September compared to the previous month.
Pair operators will be very attentive this week to various data that could generate volatility in the value of the Dollar against the Mexican Peso. The United States will publish its November employment data, starting with the ADP private employment on Wednesday, which is estimated to have generated 128,000 jobs compared to 113,000 in October. On Friday it will be the turn of the Non-Farm Payrolls (NFP)which are expected to rise to 180,000 after having increased by 150,000 the previous month. From Mexico, the most relevant data will be November inflation, which will be published on Thursday, expecting an increase to 4.4% from 4.26% in October. The publication will be closely followed by Banxico, since a relevant alteration in the forecasts could change its position regarding interest rates and the possibility of a rate cut in the first quarter of 2024.
USD/MXN Price Levels
The USD/MXN is trading at the time of writing above 17.40, gaining 1.23% on the day. After having overcome the resistance located at 17.40, the pair now aims to reach the resistance 17.49, the ceiling of last week and the last fortnight of November recorded last Thursday the 30th. Above this level and the round figure of 17.50, the The upward target will be in the psychological zone of 18.00 and 18.08, the monthly ceiling reached on November 1.
On the downside, the pair must clearly break the area of minimums tested from November 20 until today, located between 17.11/17.10 and 17.03. Once this region is broken, the USD/MXN could head to the 17.00/16.99 area, the psychological level and low of September 20.
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.
