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
SK Hynix ADR Premium Narrows Sharply, Two-Way Conversion Imminent, Arbitrage Window Tests PricingAfter experiencing a wild surge following its initial listing, SK Hynix ( SKHY) ADR premium is rapidly unwinding. In US trading on Wednesday, July 15, SK Hynix ADRs closed down 9% at $176
Author  TradingKey
8 hours ago
After experiencing a wild surge following its initial listing, SK Hynix ( SKHY) ADR premium is rapidly unwinding. In US trading on Wednesday, July 15, SK Hynix ADRs closed down 9% at $176
placeholder
Today’s Market Recap: Unexpected PPI Drop Boosts Markets, Apple Hits All-Time High, AI Hardware Stocks Remain Under Pressure, Micron, SanDisk SlumpOn July 15, Eastern Time, the three major US stock indexes closed higher for the second consecutive trading day. The unexpected decline in the US June PPI further st
Author  TradingKey
18 hours ago
On July 15, Eastern Time, the three major US stock indexes closed higher for the second consecutive trading day. The unexpected decline in the US June PPI further st
placeholder
Gold Price Trend Forecast: Why Did Gold Prices Fall After US CPI Cooled? Fed Chair Speech and Iran Situation Become Obstacles As of the Asian trading session on July 15, gold ( XAUUSD) prices fell back to fluctuate near $4,030, erasing nearly all of the gains driven by yesterday's positive CPI data. Looking at t
Author  TradingKey
Yesterday 09: 28
As of the Asian trading session on July 15, gold ( XAUUSD) prices fell back to fluctuate near $4,030, erasing nearly all of the gains driven by yesterday's positive CPI data. Looking at t
placeholder
WTI rises as Trump's threats strikes on IranWest Texas Intermediate (WTI) oil price extends its gains for the third successive day, trading around $79.20 per barrel during the Asian hours on Wednesday. Crude oil prices have climbed following threats from US President Donald Trump regarding additional military strikes on Iran.
Author  FXStreet
Yesterday 01: 21
West Texas Intermediate (WTI) oil price extends its gains for the third successive day, trading around $79.20 per barrel during the Asian hours on Wednesday. Crude oil prices have climbed following threats from US President Donald Trump regarding additional military strikes on Iran.
placeholder
Gold Price Trend Forecast: June CPI Plus Fed Chair Congressional Testimony, Can Gold Price Hold Above $4,000?As of the Asian session on July 14, gold ( XAUUSD) prices consolidated around the $4,000 mark, briefly slipping below $4,000 intraday to hit a low of $3,983.23. Looking at the market acti
Author  TradingKey
Jul 14, Tue
As of the Asian session on July 14, gold ( XAUUSD) prices consolidated around the $4,000 mark, briefly slipping below $4,000 intraday to hit a low of $3,983.23. Looking at the market acti
Related Instrument
goTop
quote