USDMXN trades 0.03% lower at 19.1385 close to weekly lows after Mexico Core Inflation came in at 0.25%, below forecasts of 0.29% in October, the 12-Month Inflation came in at 3.02% topping expectations of 3%. The pair on inflation news jumped from 19.0916 to 19.1385. Yesterday the Mexico Consumer Confidence dipped from previous 45.3 to 44.1 in October.
The Bank of Mexico in its last policy meeting cut interest rates for the second time since 2014 by 25 basis points to 7.75%. I believe that Banxico will continue in that direction with one more rate cut in the upcoming months.
Forex traders next week will focus on the Bank of Mexico policy meeting
On the USDMXN technical side, the momentum is bearish for the short term as the pair trades below all major daily moving averages. On the downside, first support for the pair stands at 19.0901 today’s low and then at 19.0536 the low from November 4th. In case of a break below that level the way to 18.8735 July lows will be open.
On the upside, first resistance stands at 19,1728 today’s high then at 19.2639 the 200-day moving average, while more offers will emerge at 19.3817 the 100-day moving average.
Traders must watch the crucial 19.00 mark; a daily close below could trigger more losses toward the YTD lows at 18.74.More content