Mexican Peso hits two-week high against the US Dollar, breaking key support level
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Mexican Peso stages a comeback as the USD/MXN breaks key support at the 100-day SMA, eyeing 17.00. Mexico’s Consumer Confidence has improved the most since 2019. US ADP Employment Change was softer than expected, weighed on the US Dollar. Mexican Peso (MXN) gains traction against the US Dollar (USD) as the soft-landing narrative takes place in the financial markets. Expectations for rate cuts by major central banks next year sent global bond yields into a tailspin, while the Greenback (USD) remains firm. Nevertheless, the USD/MXN is trading at 17.25 below its 100-day Simple Moving Average (SMA), posting daily losses of 0.74%. Mexico’s economic docket revealed Consumer Confidence data, which failed to gain traders’ attention, and remained focused on the release of further economic data from the United States (US) ahead of Friday’s November Nonfarm Payrolls (NFP) report. In the meantime, expectations of rate cuts by the Federal Reserve (Fed) remain above 100 basis points for the next year, a reason behind the USD/MXN’s drop. Daily digest movers: Mexican Peso continues to strengthen amid growing confidence in Mexican households Consumer confidence in Mexico improved to 47.3, seasonally adjusted, exceeding October’s 46.2 reading, its highest level since February 2019. Mexico’s economic calendar will feature the release of November’s Consumer Price Index (CPI), on Thursday, expected to show a slight climb compared to October’s readings. A Reuters poll revealed economists see headline inflation up in November, while core CPI is expected to slow. Across the border, Automatic Data Processing (ADP) and the Stanford Digital Lab revealed the US ADP Employment Change report, which shows companies hiring in the US and is seen as a prelude to Nonfarm Payrolls. November’s ADP Employment report showed that 103,000 jobs were added to the economy, below forecasts of 130,000, and trailed downward revised data from October at…
Filed under: News - @ December 7, 2023 1:24 am