USDMXN Turns Higher after Mexican GDP Quarterly Reading Disappoints
USDMXN turned higher after the Mexico Gross Domestic Product (quarter over quarter) came 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 Banxico in its latest policy meeting cut interest rates by 25 bps to 7.5% for 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 range.
Technically, the USDMXN momentum is positive as the pair trades above the 50 and 200-day moving average. Looking higher, the pair will find resistance at 19,3979 today’s top; while the next hurdle stands at the 100-day moving average around 19.4063, more sellers will emerge at 19.4988 the high from November 21st.
On the other hand, immediate support for the pair stands at 19.3981 today’s low which guards the 200-day moving average at 19.27078. In case of a break below that level the way to 19.053 the low from November 4th will be open.More content