Mexican peso opposes the gloomy data, the rocket higher to USD weakness

Mexican peso progress when USD/MXN falls below 19.90, which is a decrease by over 1%.
Peso moves the arms of penniless industrial production of Mexico and decreasing fears related to recession.
Consumer sentiments in the US are sinking in connection with the growing expectations of inflation, directed by the upcoming Trump administrative tariffs.

The Mexican peso (MXN) gathered on Friday to the American dollar (USD), ignoring the softer than expected economic data revealed during the week, which suggest that the economy can snail-paced down. The agreement of consumer sentiments in the United States (USA) exerted pressure to a green place, which is to end the week with losses. USD/MXN trades at 19.86, which is over 1%.

The market mood has become floating, it is a wind on the emerging market currency. The shift of reports from consumer trust and industrial production in Mexico is painted with gloomy economic perspectives, confirmed by Banco de Mexico (Banxico) of the Director for Economic Research Alejandrina Salcedo Cisneros.

She commented that uncertainty affects the country’s activities, indicating the perspectives of a moderate extension of regional economies. Banxico estimated economic spasm in all regions of the country. In the whole country, growth dropped by -0.6 % in Q4 compared to the previous quarter in seasonally corrected data.

In the United States, the Index of consumer sentiments of the University of Michigan (UOM) registered gloomy print, and inflation expectations were higher due to the tariffs of the US President Trump.

The traders’ eyes are in the political decision of the Federal Reserve next week (FED). Last Friday, the chairman of the Fed, Jerome Powell, revealed that “market means of inflation expectations increased, driven by tariffs.”

Next week, traders will look at retail sales, housing data, FED monetary policy decisions and economic forecasts.

Daily Digest Market Movers: Mexican peso is weakening rapidly

Mexican industrial production will drop to -2.9% y / y, worse than in December -2.7% inheritance with the deterioration of consumer trust suggests that Mexican peso can depreciate despite the ongoing profits, which are mainly caused by the overall weakness of the American dollar.
The economy in Mexico slows down rapidly, as private analysts surveyed by Banco de Mexico (Banxico). Expect an boost of 0.81%.
Banxico is expected to continue to alleviate politics at a meeting on March 27 stimulated by the evolution of the disinflation process and stagnation economy.
On Wednesday, the Mexican Minister of Finance Edgar Amador Zamora said that the national economy is developing, but shows signs of slowdown related to commercial voltage from the USA.
A study of consumer sentiments of the University of Michigan (UOM) showed that in March the moods deteriorated from 64.7 to 57.9, below the forecast 63.1. In particular, inflation expectations increased when the Americans recorded inflation of 12 months from 4.3% to 4.9%. Within five years, consumers saw prices of 3.9%, compared to 3.5%.
Traders on the money market were valued at 67 base points facilitating by the FED at the end of the year, compared to 74 day ago.
The Reuters survey showed that 70 out of 74 economists claim that the risk of recession increased in the USA, Canada and Mexico.
In the boiler, commercial disputes between the USA and Mexico remain in the first place and in the middle. If the countries reach an agreement, it can pave the way to regain the Mexican currency. Otherwise, another USD/MXN advantage is seen because American tariffs can cause a recession in Mexico.

Technical perspectives in USD/MXN: Mexican peso flow when USD/MXN returns below 20.00

USD/MXN finally cleaned the figure of 20.00, reaching the lowest level of the fourth month of 19.84 earlier during the North American session. Momentum favors the further minus of the couple, as the relative force indicator (RSI), changing Bearish and closing into supraralny territory has shown. Hence, the path of the slightest resistance is tilted to the minus.

The first USD/MXN support would be a 200-day straight movable average (SMA) at 19.67. If it is exceeded, the next stop would be the number 19.50, before the lowest level of September 18, 19.06. In order to stubborn resumption, the first steam level is 20.00. The decisive break will reveal the 100-day SMA at 20.35.