- USD/MXN has risen to seven-day highs at 17.1888.
- US retail sales have improved expectations in July.
- The dollar has risen to daily highs after the retail sales data but then lost its gains.
USD/MXN has gained strength after the mixed US data, rising to fresh 1-week highs at 17.1888. Although the pair has subsequently lost strength and has fallen to daily lows at 17.03, in the last few minutes it has recovered again, returning to daily highs.
Dollar rebounds strongly after mixed US data.
He Dollar Index (DXY) it has rallied strongly to daily highs at 103.27 after US retail sales, but weak Empire manufacturing index data has offset that momentum. The DXY has fallen moments later to daily lows at 102.80, and at time of writing is hovering around the 103.00 zone.
The US retail sales grew 0.7% monthly in July, improving the increase of 0.4% expected and 0.2% in June. Excluding vehicles they increased by 1%, exceeding the previous 0.2% and the previous 0.4%. The counterpart came from the New York Empire Manufacturing Index, which plunged to -19 points in August from +1.1 in July, notably worsening the -1 expected by the consensus.
In Mexico, yesterday it was learned that the country had increased its influx of tourists by 11.7% in the first half of the year compared to the same period in 2022. Foreign currency income from tourism also grew by 11.1% compared to the previous year.
The pair’s operators are now waiting for the development of market sentiment, as well as the Fed Minutes that will be published tomorrow, Wednesday, in the American session.
USD/MXN Price levels
With the USD/MXN trading at the time of writing above 17.16, gaining 0.67% daily, the next resistance if it clearly breaks the 17.18 barrier will be at 17.28, the high of August 8. Above, momentum can reach 17.42, Aug 3-4 high. A break of this level could target 17.50 before targeting the psychological 18.00 level.
On the downside, main support awaits the 7-year, 8-month low recorded on July 28 at 16.62. A break of this level would trigger a drop to the 16.50 area first and to the 16.30/35 region, where the October 2015 lows are, afterwards.
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.
