- The Mexican peso weakened 0.14% as moods regarding the risk and profit before the Fed’s political decision.
- Data in the USA is mixed, with powerful industrial production, but indigent housing, while the trade rhetoric of Trump sends economic editions.
- The economic slowdown of Mexico is concentrated, with aggregated demand and private expenses before the Banxico meeting on March 27.
On Wednesday, the Mexican peso (MXN) lost a bit of a basis for the American dollar (USD) as a trading industry (USA) Federal Reserve (FED) on Wednesday. Data from the USA was mixed, although it was overshadowed by the commercial rhetoric of US President Donald Trump. USD/MXN is 19.94, which is an boost of 0.14%.
The market mood became cynical because investors seemed to book profits before the Fed meeting. Participants expect the FED to remain looking whether it will take a dove or hawk tilting at their forecasts in the summary of economic forecasts (SEP).
Earlier, data from the US revealed that industrial production improved, but residential data was mixed. However, Trump’s policy and geopolitical development remain the main driver.
In Mexico, the Instituto Nacional de EstadÃstica GeografÃa E Informatica (Inegi) will contain aggregated demand and private expenses, each on Wednesday and Thursday. This can show how much a deep slowdown in the Mexico economy lasts a week before the Banco de Mexico (Banxico) meeting on March 27.
Daily Digest Market Movers: Mexican peso attracts Monday’s profits before the Fed meeting
- The Organization of Economic Cooperation and Development (OECD) claimed that the tariffs of US President Donald Trump on Mexican products may stimulate a recession in Mexico.
- OECD has updated its forecasts, which include 25% of tariffs used in most goods since April. OECD projects, which were influenced by the Mexico economy, shrinking 1.3% in 2025 and 0.6% next year.
- Last Wednesday, the Mexican Minister of Finance Edgar Amador Zamora said that the national economy is developing, but shows signs of slowdown related to commercial tensions from the USA.
- The US industrial production increased in February by 0.7% of mother, exceeding expectations by 0.2% and accelerating compared to 0.3% in January, powered by force in the production of motor vehicles.
- The housing data was presented by a mixed image. Construction permits fell by 1.2%, falling from 1.473 million to 1.456 million. However, the housing starts by 11.2%, increased from 1.35 million to 1.501 million, signaling stronger construction activity.
- The Money market valued at 61 base points facilitating by the FED in 2025, which caused the treasure profitability to fall together with the American currency.
Technical perspectives in USD/MXN: Mexican Peso retreat such as USD/MXN climbing over 19.90
USD/MXN records anemic profits, but the exotic couple remains below the figure of 20.00, which suggests that you can see the further minus. The price action is a “Doji tombstone”, which suggests that bears are responsible. The relative force indicator (RSI) is located on the territory of the Bear, but the buyer’s instructions stopped the activity near the range of 19.90–20.00.
A violation of 19.90 would tighten the inheritance to challenge the 200-day straight movable medium (SMA) at 19.65. After cleaning, another key level of support is 19.50, 19.00, and on August 20, 2024 at 18.64.
And vice versa, if the USD/MXN rallies aged 20.00, it will neat the 100-day SMA test for 20.35.
