- USD/MXN gains ground on risk aversion ahead of US GDP data
- Mexico's unemployment rate stood at 2.5% in February, compared to the expected 2.8%.
- Higher US Treasury yields contribute to US Dollar support.
The pair USD/MXN It stopped its three-day losing streak, advancing to around 16.60 during the European session on Thursday. However, the Mexican Peso (MXN) received support from the decline in Mexico's unemployment rate and consequently weighed on the USD/MXN and limited the pair's rise.
The unemployment rate in Mexico decreased to 2.5% from 2.7%, improving market forecasts of 2.8%. The number of unemployed decreased by 137,000 people, to 1.5 million, while the number of employed people increased by 1.1 million, to 59.4 million.
This situation allows the Bank of Mexico (Banxico) to continue applying strict debt conditions as a means of addressing persistent inflationary pressures. Inflation has consistently exceeded expectations, as seen in both headline and core measures during the mid-March assessment.
Traders take a cautious stance ahead of the release of annualized Gross Domestic Product and initial US jobless claims. scheduled for Thursday, while the US personal consumption expenditure (PCE) price index will be released on Friday.
The US Dollar Index (DXY) has risen to near 104.60, supported by rising US coupon bond yields, with the 2-year and 10-year yields standing at 4.62% and 4.21%, respectively , at the time of writing these lines. However, conflicting views among members of the Federal Open Market Committee (FOMC) on easing monetary policy are contributing to market uncertainty.
The Governor of the Federal Reserve, Christopher Waller continues to advocate for a cautious approach to rate cuts, citing persistent inflation data. The president of the Atlanta Fed, Raphael Bostic shares this sentiment, anticipating only one rate cut this year and warning against premature cuts that could exacerbate economic disruptions.
USD/MXN technical levels
Overview | |
---|---|
Latest price today | 16,572 |
Today's daily change | 0.0304 |
Today's daily variation | 0.18 |
Today daily opening | 16.5416 |
Trends | |
---|---|
daily SMA20 | 16.7952 |
50 daily SMA | 16.9924 |
SMA100 daily | 17.0823 |
SMA200 Journal | 17.2054 |
Levels | |
---|---|
Previous daily high | 16.6832 |
Previous daily low | 16.5116 |
Previous weekly high | 16.9472 |
Previous weekly low | 16.6683 |
Previous Monthly High | 17.2852 |
Previous monthly low | 16.9953 |
Daily Fibonacci 38.2 | 16.5771 |
Fibonacci 61.8% daily | 16.6176 |
Daily Pivot Point S1 | 16.4744 |
Daily Pivot Point S2 | 16.4072 |
Daily Pivot Point S3 | 16.3028 |
Daily Pivot Point R1 | 16,646 |
Daily Pivot Point R2 | 16.7504 |
Daily Pivot Point R3 | 16.8176 |
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.