USD/MXN rebounds to near 16.60 ahead of ISM Services PMI data

USD/MXN edges higher ahead of key economic data from the United States.
Mexico’s Business Confidence remained consistent at 54.3 in February.
The US Dollar could appreciate due to reducing expectations for a Fed interest rate cut in June.

Akhtar Faruqui FXStreet

USD/MXN rises to near 16.60 during the European trading hours on Wednesday. The National Statistics Agency (INEGI) reported that Business Confidence remained unchanged at 54.3 in February, maintaining high levels last seen nearly eleven years ago. However, investment prospects improved to 48.5 from 47.2, though they remain pessimistic.

The Mexican Peso (MXN) strengthened as growth in Mexico's manufacturing sector remained steady in March, contributing to undermining the USD/MXN pair. Traders will be closely monitoring the release of Gross Fixed Investment figures on Wednesday, followed by the publication of the latest meeting minutes for the Bank of Mexico (Banxico).

The steady performance of the US Dollar (USD) is contributing to the hawkish price action of the USD/MXN pair. Market sentiment is shifting, with reduced expectations for a Federal Reserve (Fed) interest rate cut in June. This has led to elevated US Treasury bond yields, favoring USD bulls.

On Tuesday, US February JOLTS Job Openings surpassed market expectations, rising to 8.756 million from the previous figure of 8.748 million. Additionally, Factory Orders rebounded with a 1.4% month-on-month increase in February, following a 3.8% decline in the prior reading.

In the United States (US), investors are focusing on the ADP Employment Change and ISM Services PMI data scheduled for release on Wednesday. Furthermore, Federal Reserve Chairman Jerome Powell is scheduled to deliver a speech on the US economic outlook at the Stanford Business, Government, and Society Forum in Stanford.

USD/MXN

Overview
Today last price	16.5873
Today Daily Change	0.0326
Today Daily Change %	0.20
Today daily open	16.5547

Trends
Daily SMA20	16.7142
Daily SMA50	16.944
Daily SMA100	17.0413
Daily SMA200	17.1942

Levels
Previous Daily High	16.6545
Previous Daily Low	16.545
Previous Weekly High	16.7703
Previous Weekly Low	16.5116
Previous Monthly High	17.0655
Previous Monthly Low	16.5116
Daily Fibonacci 38.2%	16.5869
Daily Fibonacci 61.8%	16.6127
Daily Pivot Point S1	16.515
Daily Pivot Point S2	16.4753
Daily Pivot Point S3	16.4055
Daily Pivot Point R1	16.6245
Daily Pivot Point R2	16.6942
Daily Pivot Point R3	16.7339

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

EUR/USD remains bid near 1.1650 post-US ADP

Finally some respite for the risk complex see EUR/USD partially recover from the recent steep sell-off, this time hovering around the 1.1650 zone amid decent gains in a context of renewed selling pressure on the US Dollar. However, the duration and extension of this bounce should be put to the test amid the unabated tensions in the Middle East.

GBP/USD meets resistance around 1.3400

In line with its risk-linked peers, GBP/USD stages a modest comeback on Wednesday, although meeting some resistance around the 1.3400 neighbourhood. Cable’s humble recovery comes on the back of the fresh downward bias in the Greenback amid a marginal improvement in the global sentiment and steady geopolitical effervescence.

Gold flirts with $5,200 amid safe haven demand

Gold partially fades Tuesday’s sharp pullback, regaining the $5,200 mark per troy ounce on the back of the resurgence of investors’ demand for the safe-haven space. The precious metal remains well propped up by the deterioration of the geopolitical scenario in the Middle East, while the softer tone in the US Dollar collaborates with the uptick.