Mexican peso appreciates, incompatible by American tariffs for basic Mexican metals

Mexican peso shows immunity despite 25% of American steel tariffs and aluminum on March 12.
The latest comments of the Fed Jerome Powell emphasize the less restrictive attitude of politics, confirming the economic strength.
Mexican industrial production is deteriorating, but Peso uses market dynamics despite the dove tilting Banxico.

The Mexican peso (MXN) remains stable in relation to Greenback on Tuesday after the end of the Monday session with losses of 0.35%. Despite this, the return, because the President of the United States (USA) Donald Trump imposes a 25% tariff on Mexican and aluminum steel, it is expected to be effective on March 12. On the contrary, the Mexican currency slightly strengthens, and the USD/MXN pair trads on 20.59, it will drop by 0.23%, after reaching the highest level of 20.65.

The chairman of the Federal Reserve (Fed) Jerome Powell has crossed the wires since then. He said that the attitude of Fed’s policy is less restrictive than it was, adding that the economy remains forceful and that “we do not have to hurry to adapt our political position.”

Powell repeated that monetary policy is in a good place and the US is not in recession.

In Mexico, industrial production continued to deteriorate in December, emphasizing the country’s economic slowdown. Despite this and the pigeon approach Banco de Mexico (Banxico), peso has expanded its profits.

This week, the US economic document will contain US inflation data for the consumer and on the manufacturer’s side along with further speakers of the federal reserve.

Daily Digest Market Movers: Mexican peso reject fears and growing tariffs

Mexican industrial production (IP) in December fell -1.4% MOM, below -0.5% of the contraction expected by economists. Within twelve months to December, the IP fell by -2.7%, decreasing more than -1.4%in November.
On Monday, the Governor of Banxico Victoria Rodriguez Ceja was pigeon and revealed that the central bank could reduce the rates of the same size as in February, adding that the task of introducing inflation to the target 3% did not end.
Rodriguez added that Banxico remains attentive at what can happen in March after a 30-day grace period provided by Trump.
Fed Cleveland President, Beth Hammack, commented that for some time he was conducive to maintaining rates so that the FED could assess the economy. She added that the politics is “modestly restrictive” and emphasized that it is still unclear whether inflation would continue 2% Fed.
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 voltages may appear at the end of February.
Fed Funds Federal Feder funds are prices in 38.5 base points (BPS) facilitating the FED in 2025.

Technical perspectives in USD/MXN: Mexican peso to remain related to the range

Uptrend Uptrend USD/MXN pair remains intact, but on Tuesday the price campaign shows the resistance of the market currency. Over the past four days, the pair has remained in the area of 20.30 – 20.70, with a slightly tilted rush, as shown in the relative strength index (RSI).

For stubborn continuation, buyers must recover 20.70 before they question the height of January 17 to 20.90. After exceeding, the next stop would be 21.00 and then year -on -year (YTD) at 21.29. On the other hand, sellers drive a exchange rate below the 50-day straight movable average (SMA) to 20.54, and the pair would be ready to test 20.00, but the first bears must pristine the 100-day SMA to 20.22.