- USD/MXN maintains a short-term bearish bias.
- Bank of Mexico would raise the rate by 75 basis points.
- Climate of caution prevails in the financial markets.
USD/MXN is marginally higher on Thursday, after giving back much of the gains. The pair is trading around 20.05, after rising as high as 20.13. Mexican peso remains firm and remains among the best performing currencies of the last seven days.
Waiting for Banxico
The Mexican peso continues with a bias in favor against the dollar in the short term. The 20.00 area is the current key support which, if given way, would pass the baton to the 20-day moving average at 19.92. To the upside, a rally above 20.25 would ease downside pressures. The next resistance is seen around 20.45.
The increases of the Mexican peso against the dollar accumulated on Wednesday the fourth day in a row, even despite the cautious climate that continues to dominate global markets. USD/MXN on Wednesday fell to 19.99, the lowest in ten days.
The Bank of Mexico holds the meeting of the Board of Governors. A rise in the benchmark rate of 75 basis points to 7.75% is expected. This level would be the highest since October 2018. A more aggressive Federal Reserve and inflation in Mexico continue to leave the way open for further progress.
On Thursday, the inflation for the middle of the month of June was known, which showed numbers higher than expected. The annual rate stood at 7.88% in the first fortnight of the month, a figure not seen since 2001.
Technical levels
USD/MXN
Panorama | |
---|---|
Last Price Today | 20.0838 |
Today’s Daily Change | 0.0379 |
Today’s Daily Change % | 0.19 |
Today’s Daily Opening | 20.0459 |
Trends | |
---|---|
20 Daily SMA | 19.9138 |
50 Daily SMA | 20.0466 |
100 Daily SMA | 20.2239 |
200 Daily SMA | 20.4274 |
levels | |
---|---|
Previous Daily High | 20.2506 |
Previous Daily Minimum | 19,999 |
Previous Maximum Weekly | 20.7028 |
Previous Weekly Minimum | 19.9318 |
Monthly Prior Maximum | 20.5113 |
Previous Monthly Minimum | 19.4131 |
Daily Fibonacci 38.2% | 20.0951 |
Daily Fibonacci 61.8% | 20.1545 |
Daily Pivot Point S1 | 19.9464 |
Daily Pivot Point S2 | 19.8469 |
Daily Pivot Point S3 | 19.6948 |
Daily Pivot Point R1 | 20,198 |
Daily Pivot Point R2 | 20.3501 |
Daily Pivot Point R3 | 20.4496 |
Source: Fx Street
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