- 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
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.