USD/MXN tumbles below 19.00 to lowest in 2 months

Mexican peso resumes rally versus USD after short-lived correction.
USD/MXN heads for the lowest close since April.

Matías Salord FXStreet

The USD/MXN pair approached the 19.30 area earlier today but then reverses sharply. It eared daily gains and broke below 19.00, reaching at 18.92, the lowest intraday level since May 2.

The pair was holding near the lows, with a bearish tone intact. The consolidation under 19.00 could open the doors to more losses. On Monday, USD/MXN rebounded, on a normal correction and probably amid some profit taking after a 5% slide in a week.

Comments from president-elect Andrés Manuel López Obrador contributed to the rally of the Mexican peso. The slide of USD/MXN was also boosted by a weaker US dollar. If the pair extends the slide, support levels might be seen at 18.80 and 18.70. On the upside, 19.00 is the immediate resistance followed by 19.15 and the strong area around 19.30.

Mexican inflation confirms rebound

Yesterday, inflation data from Mexico showed that the Consumer Price Index (CPI) rebounded in April to 4.65% (annual), up from 4.51% of May. At the last meeting, the Bank of Mexico rose the key interest rate to 7.75%, the highest level in a decade, amid a deterioration of the inflation outlook.

The rise in the CPI ends five months of deceleration. It the rebounds extends and the Mexican peso depreciates, another rate hike from Banxico seems likely.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.