The USDMXN exchange rate, which stands at 17.0757, remains firm despite a minor setback. The decrease in European stock values is having a negative impact on market attitudes.
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- USD/MXN stays strong despite a slight retreat; lower European equities dampen market sentiment.
The pair currently trades last at 17.0757.
The previous day high was 17.1894 while the previous day low was 17.0243. The daily 38.2% Fib levels comes at 17.0874, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.1264, expected to provide resistance.
USD/MXN clings to its earlier gains after hitting a daily high of 17.1717 and retreats below the 17.1000 figure due to thin liquidity conditions in the observance of the Juneteenth holiday. At the time of writing, the USD/MXN is trading at 17.0784, almost unchanged.
European equities closed on a lower note portraying a risk-off mood. Therefore, the Mexican Peso (MXN), often viewed as a risk-sensitive currency, weakened, but it’s trimming its earlier losses.
During the week, traders would remain focused on the Federal Reserve (Fed) Chair Jerome Powell’s appearance at the US Congress on Wednesday and Thursday. Nevertheless, most market participants estimate he would not change his latest press conference tone after he and his colleagues held rates unchanged at 5.00%-5.25%.
However, Powell and Co. suggested the Fed still has ammunition for at least 50 bps rate hikes toward the year’s end, according to the Summary of Economic Projections (SEP) dot plots. More than half of the Fed members see rates above 5.50%, a hawkish posture that Jerome Powell weighed on the downside at the post-FOMC decision press conference.
Nevertheless, the CME FedWatch Tool suggests odds for a 25 bps increase at the July meeting at 73.2%. After that, futures do not expect an additional hike, as seen in the last week’s US equity markets, which rallied to new yearly highs.
The US Dollar Index, a measure of the buck’s value against a basket of peers, climbs 0.21%, at 102.515.
On the Mexican front, recent commentaries by the Bank of Mexico (Banxico) officials suggested the central bank is set to keep rates unchanged at the June 22 meeting. Banxico’s Governor, Victoria Rodriguez Ceja, said that rates would not be changed for at least a couple of sessions. However, in the last week, Deputy Governor Jonathan Heath suggested that three meetings would be unnecessary.
Ahead of Banxico¿s decision, inflation in Mexico for the first half of June would be revealed, expected to continue its downtrend and not to change the central bank’s decision after the report.
Technical Levels: Supports and Resistances
USDMXN currently trading at 17.0767 at the time of writing. Pair opened at 17.0738 and is trading with a change of 0.02 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 17.0767 |
| 1 | Today Daily Change | 0.0029 |
| 2 | Today Daily Change % | 0.0200 |
| 3 | Today daily open | 17.0738 |
The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 17.4948, 50 SMA 17.7314, 100 SMA @ 18.1001 and 200 SMA @ 18.8469.
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 17.4948 |
| 1 | Daily SMA50 | 17.7314 |
| 2 | Daily SMA100 | 18.1001 |
| 3 | Daily SMA200 | 18.8469 |
The previous day high was 17.1894 while the previous day low was 17.0243. The daily 38.2% Fib levels comes at 17.0874, expected to provide resistance. Similarly, the daily 61.8% fib level is at 17.1264, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 17.0022, 16.9307, 16.8371
- Pivot resistance is noted at 17.1674, 17.261, 17.3325
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 17.1894 |
| Previous Daily Low | 17.0243 |
| Previous Weekly High | 17.3353 |
| Previous Weekly Low | 17.0243 |
| Previous Monthly High | 18.0780 |
| Previous Monthly Low | 17.4203 |
| Daily Fibonacci 38.2% | 17.0874 |
| Daily Fibonacci 61.8% | 17.1264 |
| Daily Pivot Point S1 | 17.0022 |
| Daily Pivot Point S2 | 16.9307 |
| Daily Pivot Point S3 | 16.8371 |
| Daily Pivot Point R1 | 17.1674 |
| Daily Pivot Point R2 | 17.2610 |
| Daily Pivot Point R3 | 17.3325 |
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