- USD/MXN has found a temporary cushion near 16.82 after mimicking the path of the USD Index.
- US stocks are bullish, but uncertainty could arise as companies start to report second quarter results.
- The Dollar Index remains under pressure as inflationary pressures have eased more than expected.
USD/MXN halted its decline near 16.82 early in the American session on Thursday, and has tried to rally today but has hit a barrier near 16.90. The bearish bias in the asset has not faded yet and for a sustained bullish reversal, the pair has to go through several filters. The pair has followed the tracks of the Dollar Index (DXY), which has also made a recovery attempt that has stopped at 99.95.
S&P 500 futures are higher on Friday, reflecting calm market sentiment at the moment. The general mood in the markets is quite upbeat, as investors expect the Federal Reserve (Fed) to skip consecutive rate hike regimes.
US stocks are in the hands of the bulls, but uncertainty could arise as companies start to report second quarter results, starting with the big banks. Earnings and forecasts could be subdued due to aggressive Fed tightening and tight credit conditions from commercial and regional banks.
The Dollar Index remains under pressure as inflationary pressures have eased more than expected and support fresh expectations of just one more interest rate hike this year. The DXY has fallen in the Asian session on Friday to 99.57, its lowest level since April 2022.
Regarding the Mexican Peso, INEGI reported that monthly industrial production (May) registered an expansion of 1.0% compared to expectations of stagnation. In annualized terms, economic data expanded 3.9% against consensus of 1.9% and previous release of 0.7%.
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.
