- Mexican peso resumes rally versus USD after short-lived correction.
- USD/MXN heads for the lowest close since April.
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.
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
Gold price looks to $3,400 as the record rally extends
Gold price prints a fresh record high above $3,380 in the Asian session on Monday, within reach of the $3,400 level. Uncertainty about US President Donald Trump's tariff policies and concerns over the Fed's independence continue to drive safe-haven flows into Gold price.
EUR/USD rallies hard to reclaim 1.1500 for first time since November 2021
EUR/USD rallies over 1% in Asian trading on Monday as the relentless selling interest in the US Dollar paves the way for the major to clear the 1.1500 threshold for the first time since November 2021. Growing concerns over a US economic recession and the Federal Reserve’s independence continue to exert downward pressure on the USD.
USD/JPY slides further below 141.00 on unabated US Dollar supply
USD/JPY extends sell-off below 141.00 at the start of a new week as trade-related uncertainties and geopolitical risks continue to boost the Japanese Yen at the expense of the US Dollar. The divergent BoJ-Fed expectations further exert pressure on USD amid thin liquidity due to the Easter Monday holiday.
Week ahead: Tariff whiplash, Powell pressure and the Gold rush pause — Buckle up, it’s a macro minefield
It’s a packed week ahead — no shortage of macro catalysts or headline risk. We’ve got a global data deluge coming through: U.S. leading indicators, the UMich sentiment read, Eurozone PMI and consumer confidence, plus Germany’s IFO survey.
Future-proofing portfolios: A playbook for tariff and recession risks
It does seem like we will be talking tariffs for a while. And if tariffs stay — in some shape or form — even after negotiations, we’ll likely be talking about recession too. Higher input costs, persistent inflation, and tighter monetary policy are already weighing on global growth.
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.