He USD/MXN It reached a 1-month high at $19.29 on Monday’s American open, and although it failed to sustain momentum it has managed to stay above the $19.00 zone. This Tuesday, the pair is trading in a narrow range of just 10 pips between the daily low of $19.06 and the ceiling at $19.17.
Pair traders are waiting for catalysts that could push direction back. The event of the day will be the speech he will make Jerome PowellFed Chairman, at 17:40 GMT.
Later in the week, on Thursday, Mexico will publish its inflation figures for January, although the focus will be on Banxico, which will announce its interest rate decision at 19:00 GMT. The market consensus expects a rise of 25 basis points to 10.75%, which if confirmed would mark a record high since the country began its current monetary policy in 2008.
With the pair trading at time of writing above 19.11, losing 0.19% daily, a ground loss may find support in the psychological area of $19.00. A break of this level could lead the pair to 18.64low of February 3, before sliding to 18.50floor of February 2 and minimum of more than four years ago.
An upside momentum would meet strong resistance at yesterday’s high, 19.29. Higher up, the main barrier will be in 19.53, 2023 high reached on January 3. the area of 19.90/91where the maximums of December 2022 are, could act as a strong limit for new advances.
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.