Mexican Peso: Under pressure as Banxico pauses – Societe Generale

Source Fxstreet

Societe Generale strategists note USD/MXN has held key lows near 17.10 and is now trying to break out from a small base formation. Initial resistance is at the 200-day moving average around 17.80, with a recent low at 17.30 acting as support. Banxico kept rates at 6.50%, signalling a longer pause, while markets price a modest hike by year-end.

Breakout attempt with key levels

"The policy rate in Mexico was maintained at 6.50% and the tone of the statement was neutral, suggesting at longer pause. Markets discount +25bp before year-end. Inflation projections by the central bank were largely unchanged."

"Mid-June inflation slowed more than expected to 3.55% while economic activity (proxy for monthly GDP) climbed 1.2% m/m in April, the fastest pace since March 2021. Mexico sold $6.3bn two-part USD debt."

"USD/MXN crossed 17.50 for the first time in three months, opening up the 200dma at 17.78 as the impending USMCA review looms in early July."

"USD/MXN held the January/February troughs near 17.10 during the recent pullback attempt, signalling first signals of waning downward momentum. The pair is now attempting to breakout from a small base formation."

"Initial resistance is seen at the 200-DMA around 17.80. A cross above this would be crucial for confirming a larger rebound. The low reached earlier this week at 17.30 may serve as near-term support."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Solana whale sbfonchain.sol is back to buying the hottest meme tokensOne of the most widely watched meme token traders, sbfonchain.sol, is back to buying.
Author  Cryptopolitan
Dec 20, 2024
One of the most widely watched meme token traders, sbfonchain.sol, is back to buying.
placeholder
EUR/USD corrects as Trump tariff fears increase safe-haven appealEUR/USD corrects to near 1.0450 in Monday’s European session after revisiting a six-week high near 1.0520 on Friday.
Author  FXStreet
Jan 27, 2025
EUR/USD corrects to near 1.0450 in Monday’s European session after revisiting a six-week high near 1.0520 on Friday.
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Author  Mitrade
Jan 06, Tue
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
placeholder
$4,050: Gold dives to fresh two-week low as Fed rate hike bets boost US DollarGold (XAU/USD) drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday.
Author  FXStreet
Jun 24, Wed
Gold (XAU/USD) drifts lower for the second straight day – also marking the fifth day of a negative move in the previous six – and drops to a nearly two-week low during the Asian session on Wednesday.
Related Instrument
goTop
quote