• Mexican peso removed profits of 0.61%, and it rotates negatively as Trump’s threat is introduced by 25% of tariffs.
• The White House refused the Reuters report on delaying the implementation tariffs until March 1.
• Mixed economic indicators in the USA and fed comments maintain careful market moods.

Mexican peso (MXN) removes some of the earlier profits and losses in relation to the US dollar (USD), which is at least 0.07% on Friday, expanding its decline after losing over 1% on Thursday. Tariff trade still increases the green place after the White House confirmed that President Donald Trump will introduce a 25% tariff to Canada and Mexico, from February 1. USD/MXN trades at 20.72 after reaching the daily lowest level 20.45.

Recently, American press secretary Karoline Leavitt emphasized that the 25% tariffs will be introduced in Canada and Mexico on February 1, depressed that previous reports were wrong. She also added that Washington would apply 10% of duties on goods imported from China.

After the Greenback Advanced and Mexican peso report, they fell when USD/MXN increased above 20.70 and tested Daily High to 20.74. below 20.50.

The Reuters report, citing unnamed sources, indicated that the US is planning to apply tariffs by March 1. The article noted that former President Donald Trump is to announce tariffs that will cover the trial so that the countries have at the request of release from a specific import.

In addition, the latest US inflation report and the Federal Reserve Inflation Index (FED), the basic indicator of personal consumption prices (PCE), increased in December, as expected, exceeding the November reading. Within twelve months to December, Core Pce remained unchanged compared to the latest numbers.

Data appears after the US GDP report in the last quarter was weaker than expected and after the last meeting of the Fed monetary policy.

It is worth noting that the Fed Parade began when Governor Michelle Bowman and the Fed President Austan Goolsbee, crossed the newswires.

Daily Digest Market Movers: Mexican peso falls as Washington says that the article Reuters is incorrect

• In an exclusive report, Reuters revealed that US President Trump will announce up-to-date tariffs against Canada and Mexico, which will start on March 1.
• “Sources that asked for them for them because they are not authorized to speak publicly in this matter, they said that they did not have detailed information on the final tariff rate, but noticed that Trump said consistently that he was planning to impose a 25% Import tariff of two countries on Saturday, “said the Reuters report.
• JP Morgan revealed through Reuters that the Mexican peso can depreciate 11.8% if the US imposes 25% tariffs on Saturday. The US Bank said that the “basic thing” is to translate tariffs.
• The PCE core in the USA increased by 2.8%. In December, as expected, while monthly inflation increased by 0.2%, compared to 0.1%of November.
• Fed Governor Michelle Bowman maintained Jastrzębie, increasing the American dollar, emphasizing that the risk of inflation remaineded out. Although she did not exclude foot cuts, she emphasized that they would depend on data and probably gradual.
• Chicago President Austan Goologee expressed confidence in the December inflation report, stating that inflation proceeds in the target direction of 2%.
• Futures on the money market now price 50 base points of Fed rates in 2025, and investors provide for the first traffic in June.

Technical perspectives: Mexican peso appreciates, but they try to support at 20.50

Uptrend USD/MXN is intact despite the constant withdrawal from Reuters Source tariff news about Mexico. The exotic pair increased to 20.45, if without challenging the 50-day straight movable average (SMA) of 20.40, but the sign was jumping that the sellers had a numerical advantage by buyers, opening the door to recover 20.50.

At further force, the next USD/MXN resistance would be a 20.77 swing on January 28. If this level were removed, the next resistance would be 21.00, and then on March 8, 2022, high at 21.46. And vice versa, if the exotic steam drops below 50-day SMA, the further minus is noticeable on the 100-day SMA at 20.08, before the 20.00 figure.