The USD/MXN pair seesaws around $18.40, after bouncing off the lowest levels in nearly five years. This aptly portrays the market’s inaction during early Monday as the US Dollar seeks next catalyst to extend the previous week’s run-up. Last week, the US Dollar Index (DXY) posted the heaviest run-up since September 2022 amid hawkish Fed concerns and upbeat US data, mainly surrounding inflation. The greenback’s gauge versus the six major currencies remains firmer for the fifth consecutive day, renewing its intraday high around 105.30 following the initial pullback from a seven-week high.
Mixed risk catalysts, sluggish bond markets, and offered Oil price seem to challenge the USD/MXN traders. The US 10-year Treasury yields reverse the early-day losses to around 3.95%, while the two-year counterparts jump back towards the highest levels since November 2022. Further, the S&P 500 Futures lick its wounds with mild gains after the Wall Street benchmark posted the biggest weekly slump of 2023. Meanwhile, hawkish concerns after the Banxico’s latest 0.50% rate hike keeps the USD/MXN bears hopeful.
Ahead of US Durable Goods Orders for January, expected -4.0% versus 5.6% prior, US PMIs for February and second-tier data from Mexico will entertain USD/MXN traders. Technical analysis suggests a corrective bounce in the USD/MXN prices, with Doji near multi-month low joining oversold RSI (14). However, buyers remain off the table unless witnessing sustained trading beyond January’s low surrounding $18.56.
Overall, USD/MXN retreats from intraday high, fails to extend the previous week’s rebound from the lowest levels since April 2018. The US Dollar struggles for clear directions after posting the heaviest run-up since September 2022 amid hawkish Fed concerns. Mixed risk catalysts, sluggish bond markets keep Mexican Peso illiquid ahead of US Durable Goods Orders. US 10-year Treasury yields reverse the early-day losses to around 3.95%, while the two-year counterparts jump back towards the highest levels since November 2022. The S&P 500 Futures lick its wounds with mild gains after the Wall Street benchmark posted the biggest weekly slump of 2023. Further, hawkish concerns after the Banxico’s latest 0.50% rate hike keeps the USD/MXN bears hopeful. Technical analysis suggests a corrective bounce in the USD/MXN prices, with Doji near multi-month low joining oversold RSI (14).
The US Dollar’s run-up last week was mainly due to upbeat US data, mainly surrounding inflation, joined hawkish Fed talks and upbeat Treasury bond yields. The US PMIs for February and second-tier data from Mexico will be in focus ahead of US Durable Goods Orders for January, expected -4.0% versus 5.6% prior. The market’s inaction during early Monday reflects the US Dollar’s struggle for clear directions. The US Dollar Index (DXY) renews its intraday high around 105.30 following the initial pullback from a seven-week high. The greenback’s gauge versus the six major currencies remains firmer for the fifth consecutive day.
Mixed concerns surrounding Russia and mildly offered Oil price seem to challenge the USD/MXN traders amid a light calendar. The US 10-year Treasury yields reverse the early-day losses to around 3.95%, while the two-year counterparts jump back towards the highest levels since November 2022. Further, the S&P 500 Futures lick its wounds with mild gains after the Wall Street benchmark posted the biggest weekly slump of 2023. Meanwhile, hawkish concerns after the Banxico’s latest 0.50% rate hike keeps the USD/MXN bears hopeful. Buyers remain off the table unless witnessing sustained trading beyond January’s low surrounding $18.56.
Overall, USD/MXN retreats from intraday high, fails to extend the previous week’s rebound from the lowest levels since April 2018. The US Dollar struggles for clear directions after posting the heaviest run-up since September 2022 amid hawkish Fed concerns. Mixed risk catalysts, sluggish bond markets keep Mexican Peso illiquid ahead of US Durable Goods Orders. US 10-year Treasury yields reverse the early-day losses to around 3.95%, while the two-year counterparts jump back towards the highest levels since November 2022. The S&P 500 Futures lick its wounds with mild gains after the Wall Street benchmark posted the biggest weekly slump of 2023. Further, hawkish concerns after the Banxico’s latest 0.50% rate hike keeps the USD/MXN bears hopeful. Technical analysis suggests a corrective bounce in the USD/MXN prices, with Doji near multi-month low joining oversold RSI (14). US PMIs for February and second-tier data from Mexico will entertain USD/MXN traders amid an anticipated corrective bounce. Buyers remain off the table unless witnessing sustained trading beyond January’s low surrounding $18.56.
