The price of the Dollar sinks to one-month lows against the Mexican Peso before the NFP

• USD/MXN has fallen to one-month lows at 17.55.
• The price of the Dollar corrects after a fall below 106.00
• The focus is on Friday’s US employment report following the mixed data released today.

The USD/MXN falls for the fourth consecutive day this week. The Dollar has fallen this Thursday against the Mexican Peso from the intraday high of 17.78 to the new one-month low reached at the opening of the American session at 17.55. At the time of writing, the pair is trading above 17.59, losing 1.00% daily.

The price of the Dollar takes a breather after falling to nine-day lows below 106.00

He Dollar Index (DXY) has continued to weaken after the sharp drop recorded after yesterday’s Fed announcement and Powell’s subsequent words. The USD traded in a narrow range during the Asian session around 106.35, and after hitting a daily peak at 106.46 in the European morning it began to give ground, falling to a nine-day low of 105.81 at the Wall Street open. In the last few hours, the greenback has recovered some of the lost ground and is now trading around 106.20, losing 0.43% on the day.

Mixed data in the US awaiting the NFP employment report

The United States today published its weekly unemployment claims data for the week of October 27. Claims rose by 5,000, from 212,000 to 217,000, worsening estimates that predicted a reduction to 210,000. On the other hand, factory orders rose 2.8% in September, bettering the 1% increase in August and the 2.3% forecast for today.

Mexico closes its markets today for the Day of the Dead holiday. Yesterday, INEGI published the Aggregate Trend Indicators (IAT). He manufacturing sector indicator stood at 49.13.6 points below the 52.7 in September, while the construction index rose to 53.4 from 50.7 the previous month.

Traders will now be awaiting the US Non-Farm Payrolls data for October. The country is expected to have created 180,000 jobs after the surprising figure of 336,000 seen in September.

USD/MXN Price Levels

A break of the monthly low at 17.55 would seek support around 17.37/17.34, where the October low recorded on the 2nd and the bottom of September 29 is. Below it awaits the region of 17.00/16.99, a psychological zone and two-month minimum recorded on September 20.

To the upside, initial resistance is at the old support at 18.00. Above, the initial barrier will be at 18.14, the maximum of October 30, prior to the 18.40/50 zone, where last month’s ceilings are.