- USD/MXN trades at 17.0741, down 0.19%, as the pair slides below the 20-day Moving Average, targeting the psychological 17.0000 level.
- Mixed US data, including a drop in inflation expectations, leaves investors uncertain about further Fed tightening beyond September.
- Technical outlook suggests downside risks below the 50-DMA at 17.0079 while reclaiming the 100-DMA at 17.2271 could spur a recovery.
The Mexican Peso (MXN) extends its gains versus the US Dollar (USD), and prolongs its rally to five consecutive days, with USD/MXN bears setting their sight on the 17.0000 psychological level after sliding below the 20-day Moving Average (DMA) at 17.0921. The pair exchanges hands at 17.0741, down 0.19%.
USD/MXN slips further as mixed US data fails to lift the Greenback, while traders eye a packed economic calendar in Mexico next week
Data from the United States (US) so far failed to bolster the Greenback (USD) as inflation expectations dropped the most in two years, as revealed by the University of Michigan (UoM) Consumer Sentiment poll. Inflation is expected to climb at a 3.1% pace, down from August 3.5%, and estimate a 2.7% jump over a 10-year period. Despite America’s optimism on inflation, sentiment fell to 677 below estimates of 69.1, blamed on high food and energy prices.
Before Wall Street opened, Industrial Production in August rose by 0.4% MoM, below July’s 1% increase but above the 0.1% estimated by the consensus, as the US Federal Reserve revealed. That depicts consumers taking a breather as retailers posted limited orders on manufacturers, struggling with higher borrowing costs and uncertainty on demand.
At the same time, the New York Fed revealed its Manufacturing Index, which expanded this month from -21 to 1.9, exceeding forecasts of -10. Given the amount of data posting positive surprises about the US economy, investors remain hesitant that the US Federal Reserve would continue to tighten monetary policy past the September meeting.
Across the border, a scarce economic docket left USD/MXN traders adrift to market sentiment and US Dollar dynamics. Nevertheless, next week’s agenda will be busy, with the release of Private Spending, Aggregate Demand, Retail Sales, Economic Activity, and inflation for the first half of September.
USD/MXN Price Analysis: Technical outlook
The USD/MXN remains neutrally biased despite printing a new multi-month high. After reaching 17.7074, the pair’s pullback could offer buyers a better entry price than last week’s close. However, downside risks remain and emerge slightly below the 50-DMA at 17.0079. Once cleared, a test of the August 28 swing low of 16.6923 is on the cards. On the other hand, if buyers reclaim the 100-DMA at 17.2271, that would exacerbate a recovery towards September’s high of 17.7074.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD off highs, back to the 1.1050 area ahead of Fed Minutes
EUR/USD keeps its bullish stance well in place, adding to Tuesday's uptick and retesting the vicinity of the 1.1100 neighbourhood on the back of the intense sell-off in the Greenback, all amid steady concerns over the impact of the China-US trade war.

GBP/USD eases to daily lows near 1.2750, USD picks up pace
The recovery attempt in the US Dollar is now prompting GBP/USD to give away part of the earlier advance past 1.2800 the figure and recedes to the mid-1.2700s in a context still widely favourable to the risk complex.

Gold climbs further, retargets $3,100
Gold preserves its bullish momentum and approaches the $3,100 level per troy ounce on Wednesday, underpinned by the steady safe-haven demand in response to trade tensions between the US and China.

Fed Minutes to offer clues on rate cut outlook amid tariff uncertainty
The eagerly awaited minutes from the US Fed’s March 18-19 monetary policy meeting are set for release on Wednesday at 18:00 GMT. During the gathering, policymakers agreed to keep the Fed Funds Target Range (FFTR) unchanged at 4.25%-4.50%.

Tariff rollercoaster continues as China slapped with 104% levies
The reaction in currencies has not been as predictable. The clear winners so far remain the safe-haven Japanese yen and Swiss franc, no surprises there, while the euro has also emerged as a quasi-safe-haven given its high liquid status.

The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.