- Mexican peso remains firm against the dollar.
- USDMXN without moving away from 19.30, maintains a bearish bias.
- More data is coming from the United States.
The USDMXN is falling on Wednesday and remains in the recent range without moving away from 19.30, and without returning above 19.50. Persistent dollar weakness remains the key to the pair’s bearish bias.
The US wholesale inflation data on Tuesday also pointed to a slowdown, which fueled expectations that the Federal Reserve would ease the pace of monetary tightening. This keeps the dollar weak and bonds in demand at the same time. Treasury yields are at their lowest in days.
Added to this is a relatively good tone in the equity markets. While Wall Street futures are pulling back modestly on Wednesday, the overall mood remains positive. Commodities are also holding on to recent gains. More US data will be released on Wednesday with the October Retail Sales report.
The USDMXN is trading in the area of ​​daily lows around 19.32, after having operated hours ago in the 19.40 area. The negative bias remains strong. Confirmation below 19.30 would enable further declines, with next support at 19.15.
In the opposite direction, the USDMXN faces resistance around 19.50. If it affirms above, the dollar could gain momentum, although only a close above 19.60 would give it more support.
technical levels
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.
