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USD/MXN falls to one-week lows below 18.75

  • The dollar remains weak against emerging market currencies as equity and commodity markets rise.
  • USD/MXN consolidates weekly losses ahead of more US data.

USD/MXN is trading at 18.74 on Friday, the lowest level in a week. This occurs in a context of dollar weakness and in advance of new economic data from the United States.

The short-term outlook for USD/MXN is skewed to the downside, particularly if they hold below 18.75, which could lead to a test of the next support zone around 18.65. If it fell below, it would re-enter the 18.50/55 radar. A return above 18.80 would relieve the bearish pressure, while just above 18.90, the dollar would be strengthened.

Data and some optimism

The US economy grew at an annualized rate of 2.9% in the fourth quarter, as revealed on Thursday, the day encouraging data from the labor market also came out. This failed to boost the dollar, but it did improve equity market sentiment, helping the performance of emerging market currencies, including the Mexican peso. This group of currencies is achieving significant weekly gains, with the Brazilian real and the Chilean peso rising the most.

There will be more data from the US on Friday with the personal income and spending report, which includes the inflation gauge of the underlying personal consumption spending index. In addition, there will be consumer confidence and home sales numbers pending.

In Mexico It was known on Thursday that the unemployment rate fell to 2.76% in December, reaching a record low. The negative side of this data is that what happened was not due to an increase in jobs but to a drop in the labor participation rate, that is, the number of people looking for a job. In December, more than 900,000 jobs were lost. While there is a seasonal effect, it is the worst month in over five years.

The next important data will be next Tuesday with the growth estimate for the fourth quarter. Then on February 9 will be the meeting of the Governing Board of the Bank of Mexico, where a new rise in the interest rate is expected.

technical levels

USD/MXN

Overview
Today’s last price 18,769
Today Daily Change -0.0254
Today Daily Change % -0.14
Today daily open 18.7944
trends
Daily SMA20 19.0203
Daily SMA50 19.3256
Daily SMA100 19,605
Daily SMA200 19.8866
levels
Previous Daily High 18,899
Previous Daily Low 18.7816
Previous Weekly High 19.11
Previous Weekly Low 18.5663
Previous Monthly High 19.9181
Previous Monthly Low 19.1084
Daily Fibonacci 38.2% 18.8541
Daily Fibonacci 61.8% 18.8264
Daily Pivot Point S1 18,751
Daily Pivot Point S2 18.7077
Daily Pivot Point S3 18.6337
Daily Pivot Point R1 18.8684
Daily Pivot Point R2 18.9423
Daily Pivot Point R3 18.9857

Source: Fx Street

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