- Mexico: inflation ends 2022 at 7.82%.
- Presidents of Mexico and the US meet in Mexico City.
- USD/MXN biased negative, looking ever closer to 19.00.
USD/MXN is modestly higher on Monday, after dipping to its lowest level since early December at 19.09. It is trading around 19.15, prior to the American session.
The main support for the rally of the Mexican peso it has to do with the weakness of the dollar throughout the market, added to the appetite for risk on Monday, after data from the US on Friday and the reopening of China. Wall Street futures point to a positive open after Friday’s rally. Commodities are advancing, giving more support to emerging market currencies.
Inflation falls slightly in December
On Monday it was learned that inflation in Mexico ended 2022 with a rise of 7.82%. The data implied a rebound from the 7.80% of the previous month. The monthly rise was 0.44%. The underlying consumer price index had a rise of 0.65% in December, and the annual rate was 8.35%, this implied a drop from 8.51% in November. It is the first drop in the annual rate in two years.
In the US, the data calendar will be light these days with the key event on Thursday being the publication of the consumer price index for December.
The president of United States, Joe Biden will meet with the Mexican president, Andres Manuel Lopez Obrador. They will also meet with the Prime Minister of Canada, Justin Trudeau.
The look at 19.00/05
The USD/MXN maintains a clearly bearish bias. Now 19.30 has become the first support of consideration. A return above could ease the negative pressures. Beyond, the critical level is at 19.55.
In the opposite direction, the pair is pressing the 19.10 area, looking in turn at the 19.00/05 barrier, which is expected to offer a brake on the pair’s depreciation. In the event of a break, the next target is at 18.85.
technical levels
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.
