- The USD/MXN rises 0.13% on Friday, currently quoting about 19.71.
- The dollar (DXY) index goes back 0.11% in the day, operating at the time of writing at 99.32.
- The operators will be attentive to the statements of Mary Daly, president of the Federal Reserve of San Francisco.
- The economic agenda of Mexico contemplates the publication of the inflation of the first half of the month and retail sales, next week.
The USD/MXN established a minimum of the day in 19.68, consolidating in minimums not seen since October 18, 2024, where it found buyers who promoted parity to a daily maximum in 19.73. Currently, the USD/MXN trades in 19.71, rising 0.13% today.
The dollar stabilizes against Mexican peso at least six months
In the middle of a day with little volume due to the Holy Friday festivities, the look of investors will be on the speech that the president of the Federal Reserve of San Francisco, Mary Daly, will offer. The official is expected to provide more information on the rate of type cuts in a context where tariff uncertainty prevails.
In this scenario, the dollar index (DXY) falls 0.11% daily, remaining within the operational range of the previous session at 99.34.
On the other hand, the Mexican peso loses traction against the US dollar, while the USD/MXN rises 0.13% on Friday, consolidating in a minimum of six months not seen since October 18 in 19.71.
The economic agenda of Mexico contemplates the retail sales of February on April 23, as well as the inflation of the first half of the month for Thursday, April 24.
USD/MXN Price levels
The USD/MXN reacted down from a short -term resistance given by the maximum of April 11 in 20,627. The next key resistance zone is observed at 21.08, maximum of April 9. Down, the important support is in 19,111, pivot point of October 4, 2024.
Mexican weight FAQS
The Mexican weight (MXN) is the most commercialized currency among its Latin American peers. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even remittance levels sent by Mexicans living abroad, particularly in the United States. Geopolitical trends can also affect MXN: for example, the Nearshoring process (or the decision of some companies to relocate the manufacturing capacity and supply chains closer to their countries of origin) is also considered a catalyst for the Mexican currency, since the country is considered a key manufacturing center in the American continent. Another catalyst for MXN is oil prices, since Mexico is a key exporter of the raw material.
The main objective of the Central Bank of Mexico, also known as Banxico, is to maintain inflation at low and stable levels (in or close to its 3%target, the midpoint of a tolerance band between 2%and 4%). To do this, the bank establishes an adequate level of interest rates. When inflation is too high, Banxico will try to control it by raising interest rates, which makes the indebtedness of homes and companies more cooling, thus cooling the demand and the economy in general. The highest interest rates are generally positive for Mexican weight (MXN), since they lead to higher yields, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the MXN.
The publication of macroeconomic data is key to evaluating the state of the economy and can have an impact on the valuation of the Mexican weight (MXN). A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only attracts more foreign investment, but it can encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this fortress is accompanied by high inflation. However, if the economic data is weak, the MXN is likely to depreciate.
As an emerging market currency, the Mexican weight (MXN) tends to rise for periods of risk, or when investors perceive that the general market risks are low and, therefore, are eager to participate in investments that carry a higher risk. On the contrary, the MXN tends to weaken at times of market turbulence or economic uncertainty, since investors tend to sell higher risk assets and flee to the most stable safe shelters.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
