He USD/MXN started the week trading in a tight range between 18.65/70. In the early hours of the European morning it reached a daily high of $18.72, but subsequently fell 11 cents to 18.61, new eleven-day low. At time of writing, the pair is trying to regain ground and is trading around 18.67, gaining a slight 0.07% on the day.
the tone of risk aversion is dominating the markets in the day prior to the release of US inflation data for January. Traders are cautious, which favors the US dollar, whose DXY index It has reached 103.83 today, its highest level since last Tuesday, February 7. At the American open, the greenback has lost momentum, moving around 103.60/65.
After the rise in interest rates by Banxico last Thursday, when the Mexican central bank raised its rates to 11%, with a rise of 50 basis points, the ball has moved to the neighboring country. The United States will publish its general and core CPI this Tuesday, which are expected to grow by 6.2% and 5.3% respectively in their year-on-year readings. The event is considered high risk, since it can cause great volatility, and the USD/MXN can move abruptly in the minutes after the publication.
USD/MXN Levels
A break below today’s low at 18.61 would point higher 18.50 (minimum of the last four years recorded on February 2). This level should act as solid support that limits any attempt at further declines. In the event of a rupture, the fall could extend to the area between 17.93/99, where are the 2018 minimums recorded in April of that year.
On the rise, the region of 18.80/85, support of the previous days, has become resistance. Higher up awaits the psychological level of the $19.00and above $19.29five and a half week high reached on February 6.
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.
