He USD/MXN fell at the European opening on Thursday to 18.90, a daily low, and then slowly regained ground. Following the US data, the pair has risen above the 19.00 zone, reaching three-day highs at 19.17.
Despite the improvement in risk sentiment after the SNB decided to support Credit Suisse, some caution persists in the markets, which has not prevented the dollar from losing some ground against the main currencies, this not being the case against the Mexican peso. Although the DXY index hit a six-day high yesterday at 105.10, today it has fallen back to 104.20, the low of the day. At time of writing, the greenback is trading at 104.44, losing 0.29% daily.
The United States published different data, with mixed results. Home starts increased 9.8% in February, notably improving on the estimated 0.6% decline. At the same time, weekly jobless claims fell to 192,000 the week of March 10, coming in better than expected. Finally, the Philadelphia Fed’s manufacturing index eased to -23.2 in March, but fell short of the -14.5 consensus estimate.
With traders digesting the latest market news, such as the 50 basis point hike in interest rates by the European Central Bankthe focus will be tomorrow on banking news and US industrial production data for February and the preliminary reading of consumer sentiment from the University of Michigan for March.
USD/MXN Levels
With the pair trading above 19.10 at time of writing, gaining 0.75% on the day, next resistance appears at 19.18maximum of March 13, prior to 19.29, maximum of February 6. Above, the target is on 19.53highest level of 2023 recorded on January 3.
On the way down, the first support is at 18.55, minimum of March 14. If broken, the psychological zone of $18.00 it would be the next level of containment. Below, 17.89minimum of March 9 and of the last five years, is the main objective.
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.
