The Mexican Bezo is declining with the increased demand for the US dollar due to Trump’s threats to customs tariffs

• Mexican bizo decreased by 0.78%, with morale turning to landmarks due to trade concerns.
• US President Trump targets cars, medicines and computer chips with taxes by 25%.
• The US dollar index reaches its four -day highest level with a federal reserve signal to be careful about reducing interest rates.
• The policy between the Bank of Mexico and the Federal Reserve prefers more weakening of the bizo; Traders are monitoring retail sales in Mexico and Mexico Bank.

The Mexican Bezo lost its strength and fell to its lowest level in two days against the US dollar on Wednesday, as US President Donald Trump targeted taxes on cars, medicines and computer chips. This has increased demand for the position of the US dollar as a safe haven, which can be seen from the rise of the US dollar/Mexican dollar pair by 0.78%, as it is circulated at 20.40.

Market morale has turned into negativity amid a new round of Trump taxes, which now includes fees of about 25% on cars, medicines and electronic slides, with an expected announcement on April 2. This strengthened the US dollar, which according to the US dollar index (DXY) reached its peak in four days at 107.32.

Meanwhile, the previously released US housing data revealed mixed results. Where the beginnings of construction decreased, while construction permits maintained the “current situation”. Now the attention of the first meeting of the Federal Reserve of the Federal Reserve is directed.

The federal reserve has become more cautious after the latest inflation readings, indicating that policy is not restricted as they believed. Consumer price index (CPI) increased for a period of five consecutive Central Bank from reducing interest rates, at least in the first half of 2025.

Therefore, the US dollar/Mexican pair is expected to rise, as it is preferable to diverge the monetary policy between the Bank of Mexico and the Federal Reserve more increase in the US dollar/Mexican. The federal reserve is expected to maintain fixed interest rates, while Mexico is expected to reduce interest rates again by 50 basis points at the next meeting.

Meanwhile, traders monitor the release of retail sales in Mexico for the month of December, which is expected to deteriorate on a monthly basis but improve despite the annual contraction. After that, the latest monetary policy report for Mexico Bank will be unveiled.

Daily market engines: Mexican Bezo remains fixed amid the reluctance of risk

• Retail sales in Mexico for the month of December are expected to appear slowing the economy. The final reading of the GDP for the fourth quarter of 2024 is expected to appear on a quarterly basis and is expected to expand annually.
• Meanwhile, investors are waiting for the report of the Bank of Mexico, which will help them collect evidence about the intention to reduce prices by 50 BPS during the year.
• The beginnings of construction in the United States in January decreased from 1.515 million to 1.366 million, or a 9.6%decrease, due to weather disorders. At the same time, American construction permits for the same period improved with the numbers from 1.482 million to 1.483 million, an increase of 0.1%.
• “The policy must remain restricted to … I see that we are continuing to achieve real progress in inflation,” said the head of the Federal Reserve Bank in San Francisco Marie Dali.
• According to the futures contract for federal interest rates for the month of December 2025, the exchange market suggests that the Federal Reserve will reduce prices by 40 basis points towards the end of the year.
• Commercial conflicts between the United States and Mexico remain in the boiling room. Although the two countries have previously found a joint ground, the US dollar/Mexican dollars should know that there is a 30 -day stoppage period and that tensions may arise towards the end of February.

Technical expectations of the US dollar pair/Mexican Bizo: Mexican bizo declines while the US dollar/Mexican dolzo rises to the simple moving average for 50 days

The upper trend of the US dollar/Mexican pair was resumed, as the simple moving intermediate husband tested for 100 days at 20.22, but failed to exceed the latter. The momentum prefers buyers in the short term due to the presence of the RSI index in the landfill.

Therefore, buyers must exceed the simple moving average for 50 days at 20.57, before targeting January at 20.93. Once it exceeds, traders can target the highest level since the beginning of the year (YTD) at 21.28, before facing 21.46. On the contrary, if the US dollar/Mexican bizo decreases without a simple moving average for 100 days, find a decrease in the number 20.00 test.