Mexican peso violently and ends a week in green minutes of Banxa

Mexican peso set to over 1% weekly profit like USD falls.
The American dollar index drops to the YTD mini with the augment in FED rates
Retail sales in the USA slows down the fears, increasing the power supply to 43.5 BPS.
Banxico minutes, GDP Mexico and retail sales are focused next week.

The Mexican peso (MXN) extended its rally on Friday, which ended the week with the benefits of over 1% in relation to Greenback. The worse than expected retail sales report fell to the American dollar (USD) to New Year (YTD), as shown in the American dollar index (DXY). The USD/MXN pair trads at 20.32, a decrease by 0.39%.

Economic data of the United States (USA) previously disclosed were the main driving force of the session after investors rejected mutual tariffs that were not yet introduced by US President Donald Trump. Nevertheless, a grim report on retail sales in January may augment the chances of a deeper economic slowdown in the United States.

He emphasizes that Americans reduce expenses due to high interest rates. From then on, investors began to value 43.5 base points to alleviate the Federal Reserve (FED), according to the data from the Chicago Board of Trade (CBOT).

The federal reserve revealed that industrial production improved in January, but did not stop the immersion of Greenback during the North American session.

In Mexico, the document was still empty. Next week, USD/MXN traders will observe the issue of retail sales, Banco de Mexico (Banxico) Policy Policy, and the number of gross domestic products (GDP) in the fourth quarter of 2024.

Daily Digest Market Movers: Mexican peso runs when green is destroyed

Deterioration in the Motor Society in Mexico and the possibility that the US is using tariffs for cars, could burden the Mexican economy, which is to show contraction in the last quarter of 2024.
The discrepancy of monetary policy between Banxico and Fed favors additional USD/MXN Upside, because the Fed would probably maintain unchanged rates. At the same time, Banxico is directed to the next reduction of the 50-base rate at the next meeting.
The American dollar index (DXY), which tracks the performance of the zloty in relation to the currency basket, transferred from 107.12 to 106.68, another reason for USD/MXN defects.
On Thursday, US President Donald Trump submitted to his economic team to develop mutual tariff plans for every country taxed by the US import.
Retail sales in the USA dropped rapidly by -0.9% in January, there are much expectations of -0.1% and disappointing investors. However, the number of December has been changed to a higher augment by 0.7%.
Meanwhile, industrial production increased in January by 0.5% MOM, compared to 1% augment in December, but by exceeding economists’ forecasts by 0.3%.
Commercial disputes between the USA and Mexico remain in the boiler. Although these countries have previously been found a common plane, USD/MXN traders should know that 30 days will occur and tensions may appear at the end of February.

Technical perspectives in USD/MXN: Mexican peso flow like USD/MXN decreases below 20.50

USD/MXN fell below the 50-day straight movable average (SMA) of 20.45, which cleaned the path of testing the area 20.25 before the 100-day SMA to 20.23. Subsequent declines are when sellers exceed these levels, with a psychological number 20.00. It is worth noting that losses can lead an exotic couple towards the 200-day SMA at 19.35.

And vice versa, if buyers want to regain control, they must pristine the key levels of resistance, such as the highest level of 17 January 20.90, 21.00 figures and year -on -year (YTD) of 21.29.