USD/MXN shoots to 2.5-week highs at 16.74
The USD/MXN pair experienced a significant rally on Friday, reaching a two-and-a-half-week high at 16.74. The Dollar gained an impressive 1.70% against the Mexican Peso, trading above 16.71 at the time of writing.
The surge in the price of the Dollar was driven by the more than likely delay of the Fed’s rate cuts. The Dollar Index (DXY) reached its highest level since November 3, 2023, at 106.10, reflecting market expectations of a delay in the first interest rate cut by the US Federal Reserve.
The University of Michigan Consumer Sentiment also reported an increase in consumers’ 5-year inflation expectation to 3%, its highest level in five months. This data further supported the Dollar’s upward trend against the main currencies.
In terms of price levels, the USD/MXN pair is now pointing towards an upward trend in the short-term charts, after hitting a low of 16.26 on Tuesday, April 9. The next key resistance levels for the pair are at 16.77 and 17.00, while support levels are at 16.26 and 16.10/15.
Overall, the USD/MXN pair is set for further upward movement in the near term, as market expectations of a delayed Fed rate cut and strong inflation data drive the price of the Dollar higher against the Mexican Peso.