USD/MXN gains ground on subdued US Dollar, trades higher near 17.25

  • USD/MXN receives upward support as the Greenback suffers losses.
  • The decline in US bond yields reinforces the weakening of the US Dollar.
  • Banxico survey increased their growth forecast from 2.10% to 2.29%, with inflation to reach 4.0% in 2024.

USD/MXN extends its gains on the second consecutive session, trading higher near 17.25 during the European hours on Monday. The USD/MXN pair gains ground on the subdued US Dollar, which could be attributed to the lowered US Treasury yields.

The US Dollar Index (DXY) moves sideways to 102.50, by the press time, with 2-year and 10-year yields on US bond coupons standing lower at 4.41% and 3.91%, respectively.

Additionally, Atlanta Fed President Raphael Bostic has suggested the potential for an interest rate cut in the third quarter of 2024. Meanwhile, Chicago Fed President Austan Goolsbee has not ruled out the possibility of a rate cut at the Federal Reserve’s meeting next March. These dovish comments from Federal Reserve officials contribute to the prevailing pressure on the Greenback.

According to the Banxico survey, Mexican economists have increased their growth forecast for 2024 from 2.10% to 2.29%, while anticipating inflation to reach 4.0% next year. In terms of monetary policy, they expect the central bank to bring rates down to 9.25%.

The Mexican Peso (MXN) has received upward support following Banxico’s decision to maintain policy rates at the level of 11.25%. This decision and the economic outlook provided by the survey are contributing factors to the currency’s positive momentum.

Investors will likely observe data releases from Mexico including Private Spending, Retail Sales, and seasonally adjusted Trade Balance for November. On the United States docket, Consumer Confidence and Existing Home Sales Change will be eyed.


Today last price17.2535
Today Daily Change0.0454
Today Daily Change %0.26
Today daily open17.2081
Daily SMA2017.2652
Daily SMA5017.6149
Daily SMA10017.4213
Daily SMA20017.5359
Previous Daily High17.3441
Previous Daily Low17.1714
Previous Weekly High17.4668
Previous Weekly Low17.141
Previous Monthly High18.0807
Previous Monthly Low17.0338
Daily Fibonacci 38.2%17.2781
Daily Fibonacci 61.8%17.2374
Daily Pivot Point S117.1383
Daily Pivot Point S217.0685
Daily Pivot Point S316.9655
Daily Pivot Point R117.311
Daily Pivot Point R217.4139
Daily Pivot Point R317.4837

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