During Wednesday’s European trading session, USD/MXN has rebounded from its recent losses, reaching around 16.80. The US Dollar (USD) is gaining strength, despite a decline in US Treasury yields, which is supporting the USD/MXN pair.
The US Dollar Index (DXY) is approaching 104.00, while the yields on 2-year and 10-year US Treasury bonds are lower, currently at 4.67% and 4.27% respectively. Investors are eagerly awaiting the outcome of the US Federal Reserve (Fed) interest rate decision scheduled for Wednesday.
The Federal Open Market Committee (FOMC) is expected to maintain the key federal funds interest rate within a range of 5.25% to 5.50%. According to the CME FedWatch Tool, there is a 6.3% probability of a rate cut in May, while the likelihood of rate cuts in June and July has increased to 59.2% and 76.0% respectively.
Recent data shows that US Building Permits and Housing Starts in February exceeded market expectations, indicating positive growth in the construction sector. Meanwhile, on the Mexican side, Private Spending witnessed a year-over-year increase of 5.1% in the fourth quarter of 2023. However, the quarter-over-quarter report showed a slight increase of 0.9%.
Attention now shifts to Retail Sales figures from Mexico, scheduled for Wednesday. In its quarterly report, Banxico highlighted progress in inflation control and stressed the importance of avoiding premature interest rate cuts. All eyes are now on the Bank of Mexico’s (Banxico) interest rate decision on Thursday, with expectations leaning towards a 25 basis points reduction.
USD/MXN
OVERVIEW | |
---|---|
Today last price | 16.8324 |
Today Daily Change | 0.0250 |
Today Daily Change % | 0.15 |
Today daily open | 16.8074 |
TRENDS | |
---|---|
Daily SMA20 | 16.92 |
Daily SMA50 | 17.0334 |
Daily SMA100 | 17.1352 |
Daily SMA200 | 17.2187 |
LEVELS | |
---|---|
Previous Daily High | 16.9472 |
Previous Daily Low | 16.8006 |
Previous Weekly High | 16.8572 |
Previous Weekly Low | 16.6461 |
Previous Monthly High | 17.2852 |
Previous Monthly Low | 16.9953 |
Daily Fibonacci 38.2% | 16.8566 |
Daily Fibonacci 61.8% | 16.8912 |
Daily Pivot Point S1 | 16.7562 |
Daily Pivot Point S2 | 16.705 |
Daily Pivot Point S3 | 16.6095 |
Daily Pivot Point R1 | 16.9029 |
Daily Pivot Point R2 | 16.9984 |
Daily Pivot Point R3 | 17.0496 |