USD/MXN stops retreat in the 18.80 area

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  • The dollar without big changes on Tuesday.
  • The Mexican peso, in line with the emerging ones, maintains a bearish bias in the very short term against the dollar.
  • Mexico: inflation advances more than expected in the first 15 days of January.

USD/MXN is rising on Tuesday after two days of sharp falls. The pair had climbed as high as 19.11 last week, but then began to pull back and hours ago, reached as high as 18.78, the low since Wednesday, before bouncing back to 18.85-

The 18.80 area has become significant support for the USD/MXN. The correction from 19.11, and from levels close to the 20-day moving average, has lost steam. In case of affirming below 18.80, the Mexican peso would strengthen.

Inflation rises more than expected in the first half of January

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In the first half of January 2023, the National Consumer Price Index (INPC) grew 0.46% compared to the previous fortnight, annual inflation reached 7.94%, according to INEGI. “The underlying price index registered an increase of 0.44% at a biweekly rate and 8.45% at an annual rate,” the report reads. The data was higher than expected.

At the last meeting, the Bank of Mexico raised the benchmark interest rate by 50 basis points to 10.50%. Banxico’s interest rate peak is currently expected around 10.75/11.00%. The next meeting of the Governing Board is on February 9.

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In the US, the preliminary reading for the PM S&P Global for January and the Richmond Fed Index will be released on Tuesday. In addition, it will be a day full of corporate results.

technical levels

USD/MXN

Panorama
Last Price Today 18.8432
Today’s Daily Change 0.0187
Today’s Daily Change % 0.10
Today’s Daily Open 18.8245
Trends
20 Daily SMA 19.1204
SMA of 50 Daily 19.36
SMA of 100 Daily 19.6418
SMA of 200 Daily 19.9056
levels
Previous Daily High 18.9198
Minimum Previous Daily 18.7919
Previous Weekly High 19.11
Previous Weekly Minimum 18.5663
Maximum Prior Monthly 19.9181
Minimum Prior Monthly 19.1084
Daily Fibonacci 38.2% 18.8408
Daily Fibonacci 61.8% 18.8709
Daily Pivot Point S1 18,771
Daily Pivot Point S2 18.7174
Daily Pivot Point S3 18,643
Daily Pivot Point R1 18.8989
Daily Pivot Point R2 18.9734
Daily Pivot Point R3 19.0269

Source: Fx Street

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