USD/MXN falls to one-week lows at 19.90, inflation continues to rise in Mexico

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  • Mexican peso among the best performing currencies on Wednesday.
  • Dollar remains firm supported by Treasury bond yields and market climate.
  • USD/MXN finds support at 19.90.

USD/MXN fell on Wednesday to 19.90 reaching the lowest level in a week. It then bounced back and is trading around 19.95, still with a bearish bias. The Mexican peso remains firm despite the decline in equity markets.

Technically, the first support for the USD/MXN appears at 19.90, and below it appears the August low at the 19.80 zone. On the upside, there is significant resistance at 20.15. Above will then follow the 20.25 area. A consolidation above 20.30 would favor more rises.

Mexico: inflation does not let up

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Data published on Thursday showed that inflation did not ease in Mexico during the first fortnight of August. The index registered an advance of 0.42%, and showed an annual rate of 8.62%, the highest level since December 2000.

The data puts pressure on Banxico to continue raising interest rates. This may be supportive for the Mexican peso, but it implies a growing economic problem.

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In the US, the durable goods orders report showed mixed figures. The dollar remains supported by Treasury bond yields, which hit their highest in weeks. In addition, the climate of caution before the possibilities of a global recession, favors the dollar. Despite the above, the Mexican peso is firm, and is among the best performing currencies these days.

On Thursday the minutes of the last meeting of the Bank of Mexico and the Jackson Hole symposium also begins. Jerome Powell speaks on Friday and can have a wide impact on the markets.

Technical levels


Last Price Today 19.9611
Today’s Daily Change -0.0158
Today’s Daily Change % -0.08
Today’s Daily Opening 19.9769
20 Daily SMA 20.1943
50 Daily SMA 20.3108
100 Daily SMA 20.1627
200 Daily SMA 20.4058
Previous Daily High 20.1968
Previous Daily Minimum 19.9514
Previous Maximum Weekly 20.2676
Previous Weekly Minimum 19.8019
Monthly Prior Maximum 21.0539
Previous Monthly Minimum 20.0921
Daily Fibonacci 38.2% 20.0452
Daily Fibonacci 61.8% 20.1031
Daily Pivot Point S1 19.8866
Daily Pivot Point S2 19.7964
Daily Pivot Point S3 19.6413
Daily Pivot Point R1 20,132
Daily Pivot Point R2 20.2871
Daily Pivot Point R3 20.3774

Source: Fx Street

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