Mexican Peso advances in aftermath of US inflation report, US yields declining becomes headwind for Greenback.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• Mexican Peso advances in aftermath of US inflation report, US yields declining becomes headwind for Greenback.
• Banxico Governor’s optimistic outlook on inflation trajectory bolsters confidence, targets 3% by 2025.
• Market shrugs off US PPI data, reducing speculation on immediate Federal Reserve rate cuts.

The Mexican Peso rallies against the US Dollar on Wednesday as traders assess the latest inflation report from the United States (US). The drop in US Treasury bond yields acts like a headwind for the exotic pair. Alongside an improvement in market mood, this is a headwind for the USD/MXN pair, which trades below the 17.20 figure, aiming to regain the 50-day Simple Moving Average (SMA).

Mexico’s economic calendar is empty throughout the week with the exception of the Bank of Mexico (Banxico) Governor Victoria Rodriguez Ceja’s interview earlier on Monday. She said inflation is expected to resume its downtrend and added that inflation would hit Banxico’s 3% target by 2025.

In the US the release of the Producer Price Index (PPI) was ignored by market participants, which had already dialed back odds for Fed rate cuts.

The USD/MXN remains neutrally-biased, but short-term momentum favors sellers. The exotic pair tumbled below the 50-day Simple Moving Average (SMA) at 17.11. The Relative Strength Index (RSI) points downward, having crossed the 50-midline, which could open the door for additional downside. A daily close below that level could pave the way for further losses. The next support would be the 17.00 figure, followed by last year’s low of 16.62.

On the flip side, if buyers reclaim the 50-day SMA, that could pave the way for further upside, with the next resistance seen at the 200-day SMA at 17.29. Once cleared, the next resistance would be the 100-day SMA at 17.40.

[/s2If]

The NEHCAP currently runs the following trading systems for clients. They can be bought and run on your funds.

The system is trading live: LIVE ACCOUNT TRACKING
Contact Us: Contact
The HFT_FIX can be run free for 2 weeks on any broker with a ECN. Apply for a free trial
Join Our Telegram Group