The USDMXN exchange rate remains stable at approximately 17.20 as the demand for the US dollar persists.

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• USD/MXN hovers around 17.20 amid the USD demand.

The pair currently trades last at 17.2007.

The previous day high was 17.2506 while the previous day low was 17.0639. The daily 38.2% Fib levels comes at 17.1793, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1352, expected to provide support.

The US Dollar (USD) loses its recovery momentum against the Mexican Peso and edges lower to 17.20 during the Asian trading hours on Friday. The hawkish remarks from the Federal Reserve (Fed) lift the Greenback broadly. Investors shift the attention to the release of US S&P Global/CIPS PMI data for September due later in the American session on Friday.

The Fed decided to hold interest rates unchanged at the 5.25-5.50% range on Wednesday’s meeting, as widely anticipated in the market. Additionally, Fed Chairman Jerome Powell reaffirmed the US central bank’s commitment to achieving a 2% inflation target in a press conference while mentioning that the Fed is ready to raise rates if necessary. This, in turn, lifts the Greenback and acts as a tailwind for the USD/MXN pair.

According to the Fed’s most recent quarterly predictions, the benchmark overnight interest rate may be hiked one more time this year to a peak range of 5.50% to 5.75%, and rates could be significantly tighter through 2024 than previously anticipated.

On Thursday, the US weekly Initial Jobless Claims dropped to 201,000, the lowest level since January. Meanwhile, the Philly Fed dropped to -13.5 in September from 12.0 in the previous reading, worse than expected at -0.7. Existing Home Sales fell to 4.04M MoM in August from the previous reading of 4.07M.

On the Mexican Peso front, the Instituto Nacional de Estadistica Geografia e Informatica (INEGI) reported on Thursday that Mexican Retail Sales came at 0.2% MoM in July from 2.3% in the previous reading, as market expected. On an annual basis, the figure rose by 5.1% versus 5.9% prior, above the market consensus of 4.9%.

Looking ahead, market players will take cues from the Mexican Economic Activity data for July ahead of the US PMI data. These figures could give a clear direction to the USD/MXN pair.

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.2066 at the time of writing. Pair opened at 17.234 and is trading with a change of -0.16 % .

The pair is trading above its 20 Daily moving average @ 17.1481, above its 50 Daily moving average @ 17.0291 , above its 100 Daily moving average @ 17.2011 and below its 200 Daily moving average @ 17.9049

The previous day high was 17.2506 while the previous day low was 17.0639. The daily 38.2% Fib levels comes at 17.1793, expected to provide support. Similarly, the daily 61.8% fib level is at 17.1352, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 17.115, 16.9961, 16.9283
• Pivot resistance is noted at 17.3018, 17.3696, 17.4885

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