The Mexican Peso (MXN) has depreciated against the US Dollar (USD), influenced by a stronger US Dollar, concerns about the Mexican economy, and expectations for further Fed rate cuts.
Key Factors:
- US Dollar Strength: The US Dollar has gained ground, supported by the recent release of the US Consumer Price Index (CPI) data and expectations for further Fed rate cuts.
- Mexican Economy: The International Monetary Fund (IMF) has revised its growth forecast for Mexico downward, citing capacity constraints and a restrictive monetary policy.
- Geopolitical Risks: The possibility of a Donald Trump presidency is increasing market uncertainty and may be weighing on emerging market currencies like the Mexican Peso.
Technical Analysis:
- Upward Trend: The USD/MXN pair is in an upward trend, with potential for further gains.
- Resistance Levels: The 20.00 level is a key resistance level.
- Support Levels: The 19.82, 19.61, and 19.10 levels are potential support levels.
- RSI: The Relative Strength Index (RSI) is in positive territory, indicating a bullish bias.
Overall Outlook:
The Mexican Peso is likely to remain under pressure, influenced by economic factors, market sentiment, and geopolitical risks. Traders should monitor technical indicators for signs of a trend reversal.
