The Mexican Peso recovers against the US Dollar and in most key pairs after key US data released on Wednesday. US CPI and Retail Sales missed analysts expectations and showed a slow down from previous readings. The data puts back on the table the possibility of an early interest rate cut from the Fed, weighing on USD. The Mexican Peso is trading flat in most pairs on Thursday as traders pause after the Peso’s rally on Wednesday.
Technical Analysis: USD/MXN resumes downtrend USD/MXN – the value of one US Dollar in Mexican Pesos – “air-kissed goodbye” the key resistance level at roughly 16.86, which it had returned to after its range breakout, and descended on Wednesday, clocking substantial losses in the progress. USD/MXN 4-hour Chart The pair has now resumed its short-term downtrend towards the conservative target for the breakout at 16.54, the 0.681 Fibonacci ratio of the height of the range extrapolated lower.