- USD/MXN is holding steady around the 16.70 mark as investors anticipate the Federal Reserve’s decision to maintain higher interest rates.
- Hawkish comments from Fed officials are providing upward momentum for the USD.
- Meanwhile, favourable risk sentiment could bolster the Mexican Peso.
- However, the US Dollar might face pressure from lower US Treasury yields.
- During Tuesday’s European session, USD/MXN is showing resilience, edging closer to 16.70. The USD is gaining strength, fueled by optimistic statements from Federal Reserve members.
- Their remarks hint at a delay in interest rate cuts, suggesting a prolonged period of elevated interest rates.
Atlanta Fed President Raphael Bostic’s cautious outlook, forecasting only one rate cut this year, aims to prevent premature adjustments that could disrupt the economy. Conversely, Chicago Fed President Austan Goolsbee stresses monitoring inflation trends before advocating for rate adjustments.
Despite the risk-on sentiment in the market, USD/MXN faces downward pressure. Surprisingly, the Mexican Peso is strengthening despite the recent interest rate cut by the Bank of Mexico (Banxico). Banxico Governor Victoria Rodriguez Ceja emphasizes a cautious approach, indicating that future rate adjustments will be gradual and data-driven.
Banxico’s decision to lower interest rates reflects subdued inflation and economic growth over the past year. While the SNB projects inflation to an average of 1.9% in 2024, the current rate remains at 1.2%. Notably, the Consumer Price Index (CPI) saw a significant increase in February, rising by 0.6% compared to the previous month’s 0.2% uptick.
USD/MXN
OVERVIEW | |
---|---|
Today last price | 16.676 |
Today Daily Change | 0.0020 |
Today Daily Change % | 0.01 |
Today daily open | 16.674 |
TRENDS | |
---|---|
Daily SMA20 | 16.8442 |
Daily SMA50 | 17.0177 |
Daily SMA100 | 17.1009 |
Daily SMA200 | 17.2111 |
LEVELS | |
---|---|
Previous Daily High | 16.7703 |
Previous Daily Low | 16.6672 |
Previous Weekly High | 16.9472 |
Previous Weekly Low | 16.6683 |
Previous Monthly High | 17.2852 |
Previous Monthly Low | 16.9953 |
Daily Fibonacci 38.2% | 16.7066 |
Daily Fibonacci 61.8% | 16.7309 |
Daily Pivot Point S1 | 16.6373 |
Daily Pivot Point S2 | 16.6007 |
Daily Pivot Point S3 | 16.5343 |
Daily Pivot Point R1 | 16.7404 |
Daily Pivot Point R2 | 16.8069 |
Daily Pivot Point R3 | 16.8435 |