- The dollar rebounds strongly against emerging market currencies after a meeting of central banks.
- The US employment report is coming.
- USD/MXN rises for the second day in a row.
USD/MXN rebounded strongly, after hitting new year lows at 18.50. Friday before key US data is prolonging the rebound and trades at 18.73.
The dollar was downhill and at its lowest in weeks against most currencies on Thursday, when it reversed trend and erased some of the recent losses. He returned to the level he was at before the Federal Reserve decision.
In this context, the USD/MXN rose from 18.50, which in addition to being the minimum since September 2018, is part of an important support zone. The bounce for the moment has extended to 18.73, and if extended would put the pair in the previous range.
A return of USD/MXN below 18.62 would point to a retest at 18.50/55while going up above 18.85, with consolidation, would leave the dollar on track for an extension of the recoverywith the next resistances at 18.90 and 19.05.
Attention is focused on Friday’s US jobs report due at 13:30 GMT. The consensus is that non-farm payrolls increased by 185,000 in January and that the unemployment rate goes from 3.5% to 3.6%, still continuing in the zone of historical lows. Revenue data will also be closely watched. It is estimated that they have registered an annual rise of 4.9%. The report includes a revision to the 2022 data.
Service sector data will be released later with the final reading of the S&P Global PMI and the Services ISM.
In MexicoThe next important thing on the calendar is next Thursday with the inflation data and Banxico’s decision.
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.
