The Mexican Peso (MXN) erases some of its Monday’s losses versus the Greenback (USD) and reclaims the 20-day Moving Average (DMA) despite a firm US Dollar (USD), with traders bracing for tomorrow’s US Federal Reserve’s decision. At the time of writing, the USD/MXN is trading at 17.0685, down 0.37%.
Investor sentiment has turned negative ahead of the Fed meeting. During the last economic projections, the Fed anticipated 1% economic growth, a 4.1% unemployment rate, 3.2% PCE inflation, 3.9% core PCE inflation, and the Federal Funds Rate (FFR) peaking at 5.60%. These projections will be updated and play a crucial role in shaping the Fed’s future policy decisions.
In the meantime, housing data was revealed and came worse than expected. Housing starts slumped 11.3% last month, the lowest level since June 2020. Data for July was revised lower to show starts accelerating to a rate of 1.447 million units instead of the previously reported 1.452 million units. Meanwhile, Building Permits jumped 6.9% above the prior month’s 0.1% expansion, the most significant rise in six months.
Meanwhile, US Treasury bond yields are trading in positive territory, with the 10-year note coupon yielding 4.337% amidst a US 20-year bond auction, while the Greenback, as shown by the US Dollar Index (DXY), is firm at around 105.12.
Across the border, the Mexican economic docket revealed a poll by the Instituto Nacional de Estadisitca Geografia e Informatica (INEGI), which shows the economy likely grew 3.4% in August compared with the same month a year earlier, in a preliminary estimate from the statistics agency.
At the beginning of the week, the USD/MXN could not crack the 100-DMA at 17.2091, opening the door for a pullback, which witnessed the pair breaching the 20-DMA at 17.1075. With that said, and with price action below most Moving Averages, the exotic pair could again test the psychological 17.00 figure. However, it must challenge the 50-DMA at 17..0101 before sliding towards the figure and beyond. For a bullish resumption, the USD/MXN must reclaim the 100-DMA, followed by the 17.5000 figure.
|Today last price||17.1002|
|Today Daily Change||-0.0353|
|Today Daily Change %||-0.21|
|Today daily open||17.1355|
|Previous Daily High||17.1825|
|Previous Daily Low||17.0304|
|Previous Weekly High||17.5959|
|Previous Weekly Low||17.0504|
|Previous Monthly High||17.4274|
|Previous Monthly Low||16.6945|
|Daily Fibonacci 38.2%||17.1244|
|Daily Fibonacci 61.8%||17.0885|
|Daily Pivot Point S1||17.0497|
|Daily Pivot Point S2||16.964|
|Daily Pivot Point S3||16.8976|
|Daily Pivot Point R1||17.2019|
|Daily Pivot Point R2||17.2683|
|Daily Pivot Point R3||17.354|
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