Market news
18.03.2024, 08:25

USD/MXN moves sideways amid a risk-off sentiment, clings to near 16.70

  • USD/MXN consolidates as risk aversion prevails ahead of policy decisions by the US Fed.
  • The correction in US Treasury yields could weaken the US Dollar.
  • Banxico is expected to reduce the 25 bps interest rate on Thursday.

USD/MXN hovers around 16.70 during the European session on Monday, marking gains for the third consecutive day. The US Dollar (USD) benefited from market caution ahead of the US Federal Reserve's interest rate decision on Wednesday.

However, the US Dollar faces downward pressure due to a correction in US Treasury yields. The US Dollar Index (DXY) hovers around 103.40, while the 2-year and 10-year US Treasury yields stand at 4.71% and 4.29%, respectively. Despite this, yields have risen recently due to a hawkish sentiment surrounding the Federal Reserve, which is expected to maintain its elevated interest rates in response to recent inflationary pressures.

In economic news, the preliminary US Michigan Consumer Sentiment Index for March declined to 76.5 from the previous reading of 76.9, contrary to expectations of remaining steady. However, Industrial Production (MoM) in February edged up by 0.1%, surpassing the anticipated flat reading of 0.0% and recovering from the previous month's decline of 0.5%.

On the other side, Mexico's Industrial Production surged by 2.9% over twelve months, surpassing December's stagnant performance. This could bolster the hawkish stance of the Bank of Mexico (Banxico).

In Banxico's quarterly report, officials acknowledged progress in inflation control and emphasized the importance of avoiding premature interest rate cuts. Governor Victoria Rodriguez Ceja has advocated for a gradual approach to adjustments, while Deputy Governor Jonathan Heath has cautioned against the risks associated with premature rate cuts.

Traders will eagerly await the release of Private Spending Retail Sales and Inflation data during the week. Furthermore, Banxico's interest rate decision is scheduled to be released on Thursday.

USD/MXN

Overview
Today last price 16.7208
Today Daily Change 0.0064
Today Daily Change % 0.04
Today daily open 16.7144
 
Trends
Daily SMA20 16.943
Daily SMA50 17.0367
Daily SMA100 17.1597
Daily SMA200 17.2231
 
Levels
Previous Daily High 16.7392
Previous Daily Low 16.664
Previous Weekly High 16.8572
Previous Weekly Low 16.6461
Previous Monthly High 17.2852
Previous Monthly Low 16.9953
Daily Fibonacci 38.2% 16.7105
Daily Fibonacci 61.8% 16.6928
Daily Pivot Point S1 16.6725
Daily Pivot Point S2 16.6307
Daily Pivot Point S3 16.5973
Daily Pivot Point R1 16.7478
Daily Pivot Point R2 16.7811
Daily Pivot Point R3 16.823

 

 

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