The price of the Dollar soars to the day’s highs against the Mexican Peso after the good US retail sales data.

• USD/MXN recovers ground and rises to daily highs at 18.08.
• The price of the Dollar jumps to the 106.50 zone.
• US retail sales rise an expected 0.7% in September, improving on the 0.3% forecast.

The USD/MXN has staged a significant recovery after it was revealed that US retail sales were better than expected in September. The pair has risen from around 17.90 to 18.08, the new high of the day.

The price of the Dollar strengthens thanks to US retail sales.

The Dollar Index (DXY) has regained traction following the release of new solid data on the US economy. The greenback has shot up from the 106.20 area to a daily high of 106.52. Although still some distance from last week’s top at 106.78, the dollar continues to show a firm bullish trend on the daily chart.

US retail sales surprised the market with a rise of 0.7% in September, compared to the expected 0.3%. Additionally, the August figure was revised upward, rising from 0.6% to 0.8%. On the other hand, US industrial production grew by 0.3% in September, improving the 0% forecast.

In Mexico, retail sales for August will be published next Friday at 12:00 GMT, expecting an increase of 4.4% annually compared to the 5.1% seen in July.

USD/MXN Price Levels

At the time of writing, USD/MXN is trading above 18.0617, gaining 0.98% on the day. If it continues upwards, you will find initial resistance at 18.10, ceiling of October 16. Above wait 18.30maximum of October 10, and level to overcome in order to head towards the zone of 18.49/50where the highest level so far this month is recorded on October 6.

downwards, 17.75 is the first support (weekly low recorded on October 12). A break below would target 17.60, the October 3 floor. In case of a break of this last level, the objective will be at 17.35, the lowest level of September 29, prior to 16.99/17.00, the minimum of September 20 and psychological zone, respectively.