USDMXN continues lower for fifth consecutive session giving up 0.08% at 19.2761 after the Mexico Headline Inflation came in at 0.81% below expectations of 0.83% in November, the 12-Month Inflation came in at 2.97% also below expectations of 3% in November.
Last week, Mexico GDP registered in at 0% below analyst’s forecasts of 0.1% in the third quarter, the yearly reading came in at -0.3% topping expectations of -0.4%.
The Central Bank of Mexico in its latest policy meeting cut interest rates by 25 bps to 7.5% for the third consecutive meeting. The central bank of Mexico noted that in the presence and possible persistence of factors that involve risks to inflation and its expectations, the interest rate policy will be adjusted to achieve the convergence of inflation to its target.
On the technical side, the USDMXN outlook is bearish now as the pair trades below the 100 and 200- daymoving average whileee as of writing has also breached the 200-day moving average which provided support on Friday.
On the downside, first support for the pair stands at 19.2377 today’s low, while a break below might open the way for a move down to 19.7778 the low from November 18th. In case of a convincing break below that support level the way to 19.053 the low from November 4th will be open.
On the other hand, USDMXN will find resistance at 19,3202 today’s high; while the next resistance level stands at the 50-day moving average around 19.3298. More sellers will emerge at 19.4469 the 100-day moving average.More content