untitled design

USD/MXN remains around 17.2300 with negative bias, focus on US housing data.

  • USD/MXN is pressured lower by weaker US economic data.
  • Initial claims for unemployment benefits in the US reached the highest level in almost three months.
  • Banxico could keep monetary policy rates at 11.25% for an extended period to achieve the inflation target of 3.0%.

The USD/MXN moves sideways with a tendency to continue the losing streak that began on November 10. This direction is influenced by additional economic data from the United States (US), which has further cemented market sentiment that the Federal Reserve will not raise interest rates. The pair was hovering around the 17.2300 region during the early hours of the European session on Friday.

Initial U.S. jobless claims for the week ending Nov. 10 totaled 231,000, exceeding the expected 220,000 and marking the highest level in nearly three months. Additionally, claims for continued unemployment benefits for the week ending November 3 rose to the highest level since 2022, reaching 1,865,000, up from the previous reading of 1,833,000. These labor market indicators highlight current challenges in the US labor market, which may contribute to broader market sentiment and potentially influence the US Dollar (USD).

The US Dollar Index DXY is hovering around 104.30 points, experiencing downward pressure mainly attributed to the decline in US Treasury yields. According to the latest data, the yield on the 10-year Treasury note stands at 4.46%, while the yield on the 2-year Treasury note stands at 4.85%. The movement of Treasury yields is a key factor influencing the weakness of the US Dollar (USD), as it reflects market expectations regarding no interest rate hike.

The Bank of Mexico (Banxico) is expected to maintain its interest rates at 11.25% as it works to achieve its inflation target of 3.0% by 2025. The decision will depend on the context of Mexican inflation, which fell to 4.26 % year-on-year in October.

Banxico Governor Victoria Rodríguez Ceja suggested on Monday that a rate cut could be a possibility next year. Additionally, Deputy Governor Jonathan Heath stressed Tuesday that monetary policy will remain restrictive.

With Mexico’s economic agenda remaining thin, traders are likely to focus on U.S. building permits and housing starts, which are scheduled for release on Friday. Expectations of a decline in these housing indicators in October may play a role in supporting the belief that the Fed is unlikely to raise interest rates at upcoming meetings.

USD/MXN technical levels

Latest price today 17.2301
Daily change today -0.0135
Today’s daily variation -0.08
Today’s daily opening 17.2436
daily SMA20 17.7843
daily SMA50 17.7024
SMA100 daily 17.3505
SMA200 daily 17.6484
Previous daily high 17.3333
Previous daily low 17.2196
Previous weekly high 17.9407
Previous weekly low 17,406
Previous Monthly High 18.4934
Previous monthly low 17.3786
Daily Fibonacci 38.2 17,263
Fibonacci 61.8% daily 17.2899
Daily Pivot Point S1 17.1977
Daily Pivot Point S2 17.1518
Daily Pivot Point S3 17.0839
Daily Pivot Point R1 17.3114
Daily Pivot Point R2 17.3792
Daily Pivot Point R3 17.4251

Source: Fx Street

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights


Most popular