The Mexican Peso strengthened on Friday, following a three-day decline. Positive economic data from China and the United States boosted market sentiment and provided support for the Peso.
Key Factors:
- Strong US Data: Upbeat US retail sales and jobless claims data improved the outlook for the US economy, benefiting the Mexican Peso.
- China Economic Growth: Stronger-than-expected Chinese GDP growth also contributed to the Peso’s recovery.
- Reduced Recession Fears: The recent economic data has eased concerns about a potential global recession.
Headwinds: While the Peso has rebounded, several headwinds remain, including threats from former US President Donald Trump, concerns about Mexico’s economic slowdown, and political risks.
Technical Analysis:
- The USD/MXN pair is showing signs of a potential pullback after forming a Japanese Shooting Star candlestick.
- However, the overall uptrend remains intact, with targets of 20.10-20.15.
- The Relative Strength Index (RSI) indicates a strong bullish momentum.
