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The price of the Dollar shoots up to a month high against the Mexican Peso

  • USD/MXN rises strongly to 17.35, a new four and a half week high.
  • The Dollar Index soars to a six-month high near 105.00.
  • Consumer confidence in Mexico reaches its highest level since 2019.

USD/MXN started Wednesday’s session trading around yesterday’s highs at 17.18, but has been gaining ground as the depressed market tone has benefited the Dollar. After the opening of the American session, the pair has experienced a new momentum, rising to 17.35, its highest level since last August 4.

The Dollar is once again the king of the market

The strength of the dollar has not stopped growing since last week, mainly because the stagnation of economic growth in economies such as China and Germany is stimulating risk aversion. He Dollar Index (DXY) has reached this Tuesday levels not seen since last March in 104.84standing a short distance from the 105.00 area.

US factory orders data was released today, showing a 2.1% decline in July, worsening the estimated 0.1% drop after rising 2.3% in June. This is the first drop in the indicator in five months. In Mexico, the consumer confidence data for August has been released, which has risen to 46.7, its highest level since 2019.

Tomorrow, Wednesday, the focus will be on the US ISM Services PMI, which could cause volatility in the Dollar, and the Fed’s Beige Book, while Mexico will publish its inflation data for August on Thursday.

USD/MXN Price levels

With USD/MXN quoting at time of writing above 17.33, gaining 0.94% daily, a breach of today’s current high at 17.35 could lead to the downside. resistance 17.42, where the maximums of August 3 and 4 are. Above, the pair could accelerate towards the zone 17.99/18.00May 23 ceiling and psychological zone, respectively.

On the downside, a clear break of the psychological zone of 17.00 could accelerate the decline to the 16.70/68 support, low of August 31 and 28, respectively. Below that, the target would be 16.62, a nearly eight-year bottom tested on July 28.

Source: Fx Street

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