- Mexico: Inflation rises more than expected in the first fortnight.
- US: Unemployment benefit requests rise unexpectedly.
- USD / MXN still unable to affirm below 20.00.
The USD / MXN is losing ground for the third day in a row on Thursday, in a context of the general downward correction of the dollar. The greenback lost the moment it had gained after the Federal Reserve meeting on Wednesday.
After the start of the American session USD / MXN is trading around 20.00, but still unable to affirm below. That area, in addition to being a round number, has become a horizontal support and is close to key moving averages. This implies that a close clearly below could trigger more lows.
In case of sustaining above 20.00, the dollar will maintain an important support and could retest 20.20. The break of this last level would reinforce the bullish bias.
Data and the Fed
On Wednesday the Fed signaled that it could start cutting the buying program at the next meeting, pushing the dollar higher throughout the market. On Thursday the data for requests for unemployment benefits was below expectations; the same happened with the manufacturing PMI.
On MexicoAccording to the mid-September measurement, inflation accelerated to 5.87%, after registering a fortnightly advance of 0.42%. Tomorrow the retail sales report will be known and next week, there will be Banxico’s decision.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
