- 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
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.
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.
|Last Price Today||18.8432|
|Today’s Daily Change||0.0187|
|Today’s Daily Change %||0.10|
|Today’s Daily Open||18.8245|
|20 Daily SMA||19.1204|
|SMA of 50 Daily||19.36|
|SMA of 100 Daily||19.6418|
|SMA of 200 Daily||19.9056|
|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
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.