The exchange rate between the US dollar and Mexican peso, at 17.1694, rises confidently above the $17.00 mark due to the US dollar’s continued strength.

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• USD/MXN shifts comfortably above $17.00 as the US Dollar remains resilient.

The pair currently trades last at 17.1694.

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 resistance. Similarly, the daily 61.8% fib level is at 17.1352, expected to provide support.

The USD/MXN pair has shifted its auction above the crucial resistance of 17.00 on Friday. The asset strengthens as the US Dollar remains firm despite the Federal Reserve (Fed) announcing an unchanged interest rate decision on Wednesday as anticipated by market participants.

S&P500 futures added some gains in the European session, portraying an ease in the risk-off market mood. The broader trend is still opposing the appeal for risk-sensitive currencies due to the upside risks of a global slowdown.

The US Dollar Index (DXY) remains directionless near a six-month high around 105.70 amid uncertainty over the interest rate peak. Fed policymakers delivered a hawkish interest rate outlook at the Federal Open Market Committee (FOMC) meeting, hinting at one more interest rate increase of 25 basis points (bps), which will push interest rates to 5.50%-5.75%.

Meanwhile, investors will focus on the release of the preliminary S&P Global PMIs for September, which will be released at 13:15 GMT. The Manufacturing PMI is expected to improve marginally to 48.0 from the August reading of 47.9. The Services PMI, which tracks a sector that accounts for two-thirds of the US economy, is anticipated to rise to 50.6 from 50.5 in August.

On the Mexican Peso, investors focus on the interest rate decision from the Bank of Mexico (Banxico), which will be announced next week. The Mexico central bank has maintained interest rates unchanged at 11.25% in the past three monetary policies.

Economists at Société Générale cited strong growth outperformance and progress on inflation containment have helped MXN to eclipse the EM currency complex this year. However, headwinds are accumulating from currently rich valuations, shifts in the Developed Markets rates paradigm, and changes to domestic policies regarding currency intervention.

Technical Levels: Supports and Resistances

USDMXN currently trading at 17.1778 at the time of writing. Pair opened at 17.234 and is trading with a change of -0.33 % .

The pair is trading above its 20 Daily moving average @ 17.1481, above its 50 Daily moving average @ 17.0291 , below 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 resistance. 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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