USD/MXN bids lower near 17.18, Mexico inflation data eyed


  • USD/MXN moves sideways following the upward revision of US inflation expectations.
  • UoM Consumer Sentiment poll revised inflation expectations for one year to 4.5% from 4.4%.
  • Mexico Retail Sales decelerated from 3.2% to 2.3% annual growth in September.

USD/MXN extends its losses on the second successive session, bidding lower around 17.18 during the early European hours on Thursday. The Mexican Peso (MXN) experienced volatility following the upward revision of inflation expectations by American households. This development led to a surge in Treasury bond yields in the United States (US), which might have provided support for the US Dollar (USD).

The University of Michigan Consumer Sentiment poll revealed that inflation expectations, rose for one year to 4.5% from 4.4% in the previous report, while it stood at 3.2% for a five-year period. Moreover, However, US Durable Goods Orders in October declined by 5.4% against the market consensus of 3.1%. US Jobless Claims reported a larger-than-anticipated decline for the week ending on November 17, with reducing to 209K from 233K prior.

Looking at the flip side, Mexico experienced a 2.3% year-on-year growth in Retail Sales for September. This marked a deceleration from the 3.2% growth observed in August and fell short of the anticipated 3.6% expansion. The numbers are starting to reflect the influence of the elevated interest rates imposed by the Bank of Mexico (Banxico), which currently stands at 11.25%.

Furthermore, the initial projections reported by Reuters indicate a 2.9% year-on-year growth for Mexico's economy in October. Looking ahead, Thursday's forecast predicts a rise in the first half-month inflation for November, although there's an expectation of a slight dip in core inflation. Furthermore, Friday will unveil the annual rate of Gross Domestic Product, with an anticipated contraction in the third quarter.

US markets will be taking a break on Thursday for Thanksgiving Day on Thursday. Come Friday, the US is scheduled to unveil the S&P Global Manufacturing and Services PMI figures for November,  expecting a potential decrease in both indices.

USD/MXN: important levels to watch

Overview
Today last price 17.1751
Today Daily Change -0.0232
Today Daily Change % -0.13
Today daily open 17.1983
 
Trends
Daily SMA20 17.5716
Daily SMA50 17.6919
Daily SMA100 17.3554
Daily SMA200 17.6203
 
Levels
Previous Daily High 17.2521
Previous Daily Low 17.1553
Previous Weekly High 17.7273
Previous Weekly Low 17.189
Previous Monthly High 18.4934
Previous Monthly Low 17.3786
Daily Fibonacci 38.2% 17.2151
Daily Fibonacci 61.8% 17.1923
Daily Pivot Point S1 17.1518
Daily Pivot Point S2 17.1052
Daily Pivot Point S3 17.055
Daily Pivot Point R1 17.2485
Daily Pivot Point R2 17.2987
Daily Pivot Point R3 17.3452

 

 

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