He USD/MXN it rallied a couple of hours after the American open to two-day highs at $18.99, failing to break the $19 barrier. At time of writing, the pair is trading above 18.94, gaining 0.04% daily.
Traders of the pair remain cautious awaiting the Banxico announcement, which will publish its interest rate decision in a few minutes. The Mexican central bank is expected to increase its interest rates by 25 basis points to 10.75%, a level that would mark an all-time high since the country began its current monetary policy in 2008.
Earlier in the day, Mexico published its inflation data for January, with the year-on-year figure reaching 7.91%, above the previous 7.82% and the estimated 7.89%. This is the highest level recorded since October.
USD/MXN Levels
If the USD/MXN manages to overcome the resistance zone of the $19.00will go to $19.29high for the week reached on February 6, before trying to move towards 19.53, 2023 high reached on January 3. the area of 19.90/91where the maximums of December 2022 are, could act as a strong limit for new advances.
To the downside, a break in the area 18.80/85where the lows of this Thursday and yesterday Wednesday are, could trigger a decline towards 18.64$, floor of February 3 and first relevant support before 18.50 (minimum of February 2 and of the last four years). The breakdown of this region could cause significant losses towards 17.93floor of April 2018, and 17.44$, minimum of the year 2017.
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.
