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23 Jun 2015
Mexican peso reverses short-term trend, eyes 15.50
FXStreet (Córdoba) - The Mexican peso reached last week the strongest level in a week against the US dollar after the FOMC decision but then reversed and changed the short-term direction.
Today USD/MXN rose further and reached at 15.435, the highest since last Wednesday. Price remains above 15.400 after breaking two key resistance levels: 15.37 and a downtrend line originated at June highs. To the upside, the next key level lies at 15.50. On the opposite direction, a relevant support could be seen around 15.27 (June 19, 22 lows).
Data and USD
Many analysts point out that the central bank of Mexico is likely to raise rates by October and continue to do so in 2016, but gradually. On Monday the retail sales report showed an unexpected decline in Mexico (-0.3% vs +0.4%). Tomorrow mid-month inflation data will be released and also the Economic Activity monthly index.
In the US, today’s economic data showed a mixed picture: durable goods orders and the preliminary PMI manufacturing index dropped more than expected; the positive note was the new home sales numbers that rose significantly above expectations. Greenback receive a boost today with Jerome Powell (FOMC voter), who said that the Fed could lift rates by September.
Today USD/MXN rose further and reached at 15.435, the highest since last Wednesday. Price remains above 15.400 after breaking two key resistance levels: 15.37 and a downtrend line originated at June highs. To the upside, the next key level lies at 15.50. On the opposite direction, a relevant support could be seen around 15.27 (June 19, 22 lows).
Data and USD
Many analysts point out that the central bank of Mexico is likely to raise rates by October and continue to do so in 2016, but gradually. On Monday the retail sales report showed an unexpected decline in Mexico (-0.3% vs +0.4%). Tomorrow mid-month inflation data will be released and also the Economic Activity monthly index.
In the US, today’s economic data showed a mixed picture: durable goods orders and the preliminary PMI manufacturing index dropped more than expected; the positive note was the new home sales numbers that rose significantly above expectations. Greenback receive a boost today with Jerome Powell (FOMC voter), who said that the Fed could lift rates by September.