- Mexican peso in ranges against the dollar, in line with the rest of the market.
- USD/MXN remains above 20.00, after rising in the American afternoon on Tuesday.
- Focus on key US inflation data and Fed minutes.
The USD/MXN shows no significant changes on Wednesday, validating the rise in the previous session. The pair climbed on Tuesday from weekly lows at 19.93 and reached 20.11, although it ended the day in the 20.05 area, where it is trading after the opening of the American session.
In the very short term, the USD/MXN continues to move laterally, currently in a small range between 20:00 and 20:10. This is within an even larger range between 19.95 and 20.15, which has prevailed for two weeks. Just a clear close above 20.17 or below 19.90 would be a sign that USD/MXN may exit sideways.
US: Inflation data and Fed minutes
It was known on Wednesday that the Producer Price Index for September rose 0.4%, above the 0.2% expected. The annual rate was reduced from 8.7% to 8.5%. The data generated a slight rise in the dollar in the market, but in general it remained at previous levels.
The focus now is on what will be the minutes of the last meeting of the Federal Reserve. There they will look for clues about the next steps. A high-impact data will arrive on Thursday with the Consumer Price Index for September.
In Mexico It will be a light week in terms of economic data. The only data was known today with a rise in industrial production in August of 3.9% compared to the same month of the previous year. In July, this rate had been 2.6%.
Technical levels
Source: Fx Street
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