- The USD/MXN depreciates as growth in the Mexican manufacturing sector remains stable in March.
- S&P Global's Mexico manufacturing PMI stood at 52.2 in March, virtually unchanged from the previous 52.3.
- The US dollar could strengthen if traders revise their expectations for Fed rate cuts in June.
USD/MXN gives back its recent gains, depreciating to near 16.60 during the European session on Tuesday. The Mexican Peso (MXN) strengthens as growth in Mexico's manufacturing sector remains stable in March, contributing to the depreciation of the USD/MXN pair.
Furthermore, Mexican inflation has increased to 0.27% and 0.33% for the general and underlying measures, respectively, in the first half of March. This positive development has allowed the Bank of Mexico (Banxico) to maintain restrictive lending conditions as part of its efforts to address current inflationary pressures.
In March, the S&P Global Mexico manufacturing Purchasing Managers' Index (PMI) stood at 52.2, virtually unchanged from 52.3 in February. This means a continuous improvement in the health of the sector. Although the growth rate was moderate, it remained above its long-term trend.
Following Monday's positive United States (US) ISM Manufacturing PMI data, US Treasury yields saw a rebound, consequently limiting the decline in the USD/MXN pair.
The US ISM Manufacturing PMI revealed an unexpected expansion in March, with the index rising to 50.3 from 47.8 in February, beating expectations of 48.4. This index marked the highest level observed since the last decade. This reading marked the highest level seen since September 2022. Additionally, US ISM Paid Manufacturing Prices rose to 55.8 in March, surpassing both the expected reading of 52.6 and the previous reading of 52.5.
The US Dollar Index (DXY) maintains its bullish momentum, extending its winning streak for the fifth consecutive session and currently trading around 105.00. This favorable trend is attributed to traders revising their expectations for a quarter-point interest rate cut by the Federal Reserve during its June meeting.
USD/MXN
Panorama | |
---|---|
Today's Latest Price | 16.5815 |
Today's Daily Change | -0.0318 |
Today's Daily Change % | -0.19 |
Today's Daily Opening | 16.6133 |
Trends | |
---|---|
20 Daily SMA | 16,734 |
SMA of 50 Daily | 16.9593 |
SMA of 100 Daily | 17.0492 |
SMA of 200 Daily | 17.1969 |
Levels | |
---|---|
Previous Daily High | 16.6737 |
Previous Daily Low | 16.5331 |
Previous Weekly High | 16.7703 |
Previous Weekly Low | 16.5116 |
Previous Monthly High | 17.0655 |
Previous Monthly Low | 16.5116 |
Daily Fibonacci 38.2% | 16.62 |
Daily Fibonacci 61.8% | 16.5868 |
Daily Pivot Point S1 | 16.5397 |
Daily Pivot Point S2 | 16.4661 |
Daily Pivot Point S3 | 16.3991 |
Daily Pivot Point R1 | 16.6803 |
Daily Pivot Point R2 | 16.7473 |
Daily Pivot Point R3 | 16.8209 |
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.