- USA: annual inflation falls more than expected in July.
- The dollar has abruptly fallen after the data.
- USD/MXN goes from 20.20 to 19.97.
The USD/MXN fell sharply on Wednesday after the release of July inflation data from the United States. The pair fell below 20.00 for the first time since late June.
The dramatic decline in USD/MXN came from levels above 20.20 and reached as low as 19.97 so far. The price remains in the zone of the day’s lows, with a bearish tone intact.
The downward movement is being guided by a sharp decline in the dollar throughout the market. The key factor was the US inflation data for July, which showed data below expectations and reduced the expected adjustment by the Federal Reserve for the coming months.
The USD/MXN is having one of the worst days in months, posting the third daily drop in a row. A week ago, the price was in the area of ​​20.80.
The negative moment could persist since the data also triggered increases in raw materials and in Wall Street shares. The Dow Jones is up 1.60% and the Nasdaq 2.25%.
Technical levels
Source: Fx Street
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