- USD/MXN drops below 50 days of SMA at 20.42, trading in 20.27.
- Retail sales in the weak United States and the most fueled PPI fuel feeds expectations that reduce.
- Focus on retail sales in Mexico, Banxico Motor, and Q4 GDP this week.
Mexican Peso (MXN) has extended its gains for US dollar (USD), cleans the main support on a simple 05 -day moving average Rates. At the time of writing this report, the strange pair is trading at 20.27, a decrease of 0.09 %.
Last week, retail sales report in the United States (United States) led to a decrease in the MXN dollar pair amid uncertainty about economic growth in the United States.
Although consumer enlargement data increased in the United States, some of the sub -components of the product Price indicator (PPI) used for the Federal Reserve Favorite inflation scale (FIRED), the basic expenses for personal consumption (PCE) indicates that prices may aim to decrease, which increases the chances of reducing the Federal Reserve.
After Friday data, the Chicot Commercial Council numbers indicate that investors have 43 basis points (BPS) of mitigation.
Nevertheless, the Federal Reserve Chairman in Philadelphia Patrick Harker stated that the current situation of the economy justifies maintaining a fixed average policy, noting that monetary policy is now good. He acknowledged that inflation has remained high and continuous in recent months, focusing on the fact that the federal reserve policy position should continue to reduce inflation.
Before this week, the Mexico’s economic list will include retail sales for December, the latest Banco De Mexico (banxico) meeting, and the total local products of Q4 2024.
Mobers Daily Digest Market: Mexican Bzo climbing despite Pancico Duvish’s position
- The difference in monetary policy between Pancico and Favors is more than the upper trend of the US dollar (MXN), as the Federal Reserve is likely to maintain rates for a longer period, while Pancico is expected to reduce prices again by 50 basis points at the next meeting.
- The US dollar index (DXY), which tracks Pak’s performance against a currency basket, has not already changed at 106.77, a opposite wind for USD/MXN.
- Commercial conflicts between the United States and Mexico remain in the boiler room. Although countries have previously found a common ground, US dollar traders/MXN should know that there is a temporary stop for 30 days and that tensions may arise at the end of February.
Technical expectations in US dollars/MXN: Mexican Peso is increasing as USD/MXN decreases to less than 50 days of SMA
US dollar trends/MXN are lower on Monday and close to SMA for 100 days in 20.24, which, if wiping it, can open the door to more negative aspect. The RSI has turned into a decline, which indicated that the strange husband can turn to the psychological number 20.00.
In this result, if the sellers are paid to less than 20.00, then the next support will be swinging on October 18 at 19.64, followed by SMA for 200 days in 19.37.
On the contrary, if the US dollar/MXN rises over SMA for 50 days, the following resistance will be 20.50, followed by the highest level on January 17 of 20.90, number 21.00, and at a year (YTD) from 21.29.
Common brown questions
Mexico Bank, also known as Pancico, is the central bank in the country. Its mission is to maintain the value of Mexico, Mexican Peso (MXN), and control of monetary policy. To this end, its main goal is to maintain low and stable inflation within the target levels – at or close to its 3 % goal, the center point in the tolerance range ranges between 2 % and 4 %.
The main tool for banknotes for monetary policy guidance is to determine interest rates. When inflation is higher than the target, the bank will try to tame it by raising prices, which makes it more expensive for families and companies to borrow money and thus cool the economy. The highest interest rates are generally positive for Mexican Peso (MXN) because it leads to higher returns, making the country a more attractive place for investors. On the contrary, low interest rates tend to weaken MXN. The difference in the average with the US dollar, or how Banxico is expected to determine interest rates compared to the Federal Federal Reserve (Fed), which is a major factor.
Pancico meets eight times a year, and its monetary policy is greatly affected by the US Federal Reserve decisions (Fed). Therefore, the Central Bank Resolution Committee usually gathered a week after the Federal Reserve. When doing this, Pancico interacts and sometimes expects monetary policy measures set by the Federal Reserve. For example, after the Covid-19 pandemic, before raising the federal reserve rate, Pancico was first trying to reduce the chances of a significant decrease in the Mexican Bzo (MXN) and to prevent capital flows that could shake the country.
2025-02-17 19:25:17
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