Market news
28.03.2024, 08:39

USD/MXN snaps its three-day losing streak, advances to near 16.60

  • USD/MXN gains ground on risk aversion ahead of US GDP Annualized.
  • Mexico’s Jobless Rate stood at 2.5% in February, against the expected 2.8%.
  • The higher US Treasury yields contribute support for the US Dollar.

USD/MXN halts its three-day losing streak, advancing to near 16.60 during the European hours on Thursday. However, the Mexican Peso received upward support, which could be attributed to the softer Jobless Rate, consequently, undermining the USD/MXN pair.

The unemployment rate in Mexico decreased to 2.5% from 2.7% in the same period a year earlier, surpassing market forecasts of 2.8%. The number of unemployed individuals decreased by 137,000 to 1.5 million, while the number of employed individuals rose by 1.1 million to 59.4 million.

This situation allows the Bank of Mexico (Banxico) to continue implementing tight borrowing conditions as a means to address persistent inflationary pressures. Inflation has consistently exceeded expectations, as observed in both headline and core measures during the mid-March assessment.

Traders adopt a cautious stance ahead of the release of Gross Domestic Product Annualized and Initial Jobless Claims data scheduled for Thursday, with Personal Consumption Expenditures set to be revealed on Friday.

The US Dollar Index (DXY) has risen to nearly 104.60, supported by higher yields on US coupon bonds, with the 2-year and 10-year yields standing at 4.62% and 4.21%, respectively, at the time of writing. However, conflicting views among members of the Federal Open Market Committee (FOMC) regarding monetary policy easing are contributing to market uncertainty.

Federal Reserve Board Governor Christopher Waller continues to advocate for a cautious approach toward rate cuts, citing persistent inflation data. Atlanta Fed President Raphael Bostic shares this sentiment, anticipating only one rate cut this year and warning against premature reductions that could exacerbate economic disruptions.

USD/MXN

Overview
Today last price 16.572
Today Daily Change 0.0304
Today Daily Change % 0.18
Today daily open 16.5416
 
Trends
Daily SMA20 16.7952
Daily SMA50 16.9924
Daily SMA100 17.0823
Daily SMA200 17.2054
 
Levels
Previous Daily High 16.6832
Previous Daily Low 16.5116
Previous Weekly High 16.9472
Previous Weekly Low 16.6683
Previous Monthly High 17.2852
Previous Monthly Low 16.9953
Daily Fibonacci 38.2% 16.5771
Daily Fibonacci 61.8% 16.6176
Daily Pivot Point S1 16.4744
Daily Pivot Point S2 16.4072
Daily Pivot Point S3 16.3028
Daily Pivot Point R1 16.646
Daily Pivot Point R2 16.7504
Daily Pivot Point R3 16.8176

 

 

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