USDMXN gives up 0.10% at 19.7736 after the United States Initial Jobless Claims came in at 219K, above expectations of 215K on September 27th. Mexico Consumer Confidence climbed from the previous 43.8 to 45.3 in September, while the Consumer Confidence s.a came in at 44.7 for August, the previous reading was 43.4.
The Bank of Mexico in its last policy meeting cut interest rates for the first time since 2014 by 25 basis points to 8%. I believe that Banxico will continue in that direction with two more rate cuts before the year-end, and today’s boost in consumer confidence will not change the outlook of the bank.
The USDMXN momentum is positive in the short-term despite today’s correction as the pair trades above all major daily moving averages. On the upside, first resistance stands 19,81, today’s high followed by the 20.00 level, the high from September 4th, while more offers could emerge at the yearly high of 20.2573. On the downside, immediate support for the pair stands at 19.73, today’s low, and then at 19.60, the 50-day moving average.Download our latest quarterly market outlookfor our longer-term trade ideas.
Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.