- The USD/MXN falls 0.22% on Thursday, currently operating at 19.59.
- The dollar index (DXY) slides 0.46% daily, consolidating within the range of Wednesday’s session at 99.41.
- The consumer price index (CPI) of Mexico increased 0.12% in the first half of April, above market projections.
- Weekly applications for US unemployment subsidy increased to 222,000 in the week that ended on April 19, exceeding analysts’ estimates.
The USD/MXN marked a daily maximum in 20.44, where it found aggressive vendors that struck parity to a minimum not seen since January 24 in 20.26. Currently, the USD/MXN operates at 20.29, losing 0.58% daily.
The Mexican weight advances after the publication of key economic data
Based on information presented by the National Institute of Geography and Statistics (INEGI), the Mexico Consumption Price Index (CPI) rose 0.12% in the first half of the month, standing above -0.04 provided by analysts and 0.14% observed in the previous fortnight.
The underlying inflation, which does not consider food or energy, increased 0.34% in the same period, exceeding 0.20% expected by the market. At an annual rate, the underlying IPC was 3.90%
On the other hand, the orders for durable goods in the United States increased 9.2% in March compared to the planned 2% and 0.9% reported in February. Similarly, weekly unemployment subsidy requests increased to 222,000 in the week that ended on April 19. This figure is greater than the estimated 221,000 and the 216,000 presented in the previous week.
The dollar index (DXY) goes back 0.46% today, operating at the time of writing at 99.45, unable to exceed the key psychological level of 100.00.
In this sense, the Mexican peso takes up the upward perspective, while the USD/MXN falls 0.22%, consolidating within Wednesday’s operational range in 19.59.
USD/MXN Price levels
The USD/MXN reacted down from a short -term resistance given by the maximum of April 9 in 21.08. To the south, the closest support is located in 19.38, minimum of September 18, 2024. The following support zone is observed in 18.59, pivot point of August 16, 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.