Mexican peso gatherings, as inflation fuel in the United States feeds hope for hopes

• The Mexican Bizo USD/MXN is pushing about 20.00.
• The induction uncertainty continues, but the feature of the return keeps peso attractive
• US consumer price index data is more soft than expected, raising bets on FBI price discounts and enhancing MXN’s call.
• The Minister of Finance in Mexico recognizes the economic slowdown amid commercial tensions; Industrial data.

The Mexican Biso (MXN) is gathered against the US dollar (US dollar) on Wednesday as the latest inflation in the United States (the United States) that can force the Federal Reserve (Fed) to reduce borrowing costs, thus expanding the technical benefit between Mexico and the United States. At the time of writing this report, the pair of the dollar/MXN is trading at 20.16, a decrease of 0.45 %.

The economic list in Mexico is still absent, as traders are looking to launch industrial production figures. However, the rear seat data has taken because the American commercial policies pay the financial markets.

Today, the United States has started applying a 25 % tariff to aluminum and steel imports worldwide, without exemptions, including Mexico. Mexican President Claudia Shinbum said that she will wait for a decision in the coming weeks, adding, “We will wait until April 2, and since then we will see whether our definition of mutual definitions will also be applied.”

Mexican Finance Minister Edgar Amadur Zamora said the national economy is expanding, but it shows signs of slowdown related to commercial tensions with the United States.

The American Labor Statistics Office (BLS) revealed that consumer enlargement in the United States came under estimates in the title and basic numbers. Although this is a satisfaction of the Federal Reserve (Fed), concerns that the customs tariff may be vulnerable to inflation is likely to keep the Federal Reserve in the reservation position because it evaluates its impact on monetary policy.

Besides, federal reserve officials will see the issuance of the product price index (PPI) on Thursday, where some of its data are used to calculate the basic personal consumption expenses index (PCE).

Digest Market Mark: Mexican bizo rises thanks to the weak US dollar

• Data in Mexico shows that the economy slows down, as private economists estimate growth by 0.81 %, according to the Banco De Mexico (banxico) poll in February. This consumer confidence report and its reduction on Monday indicates that Pancico can reduce interest rates at the March 27 meeting.
• According to Reuters, the President of Mexico said on Wednesday that the country’s government will not take advantage of the open credit line with the International Monetary Fund (IMF), adding that the current economic challenges are not required after funding from the lender.
• The US Consumer Prices Index (CPI) increased by 0.2 % in February, less than 0.3 % expected. On an annual basis (YOY), inflation decreased from 3.0 % to 2.8 %.
• Core CPI, which excludes flying food and energy prices, increased by 0.2 % of MOM, slowed from 0.4 % in January and reduced expectations. Over the past twelve months, Core CPI has decreased from 3.3 % to 3.1 %, indicating more refining.
• Traders in the money market were priced at 74 basis points of mitigation by Federal Reserve (Fed) at the end of the year.
• A Reuters opinion poll showed that 70 out of 74 economists say that the risk of stagnation has risen in the United States, Canada and Mexico.
• In the boiler room, commercial conflicts between the United States and Mexico remain in the forefront and the center. If the two countries reach an agreement, it may pave the way for the recovery of the Mexican currency. Otherwise, more USD/MXN is seen because American definitions can lead to stagnation in Mexico.

Technical expectations USD/MXN: Mexican Peso rises with the decline in the US dollar/MXN to less than 20.20

USD/MXN has finally erupted to the 20.20 Figure, which opens the door to test number 20.00, where sellers pay the immediate price to less than the simple moving average for 100 days (SMA) at 20.22. If the pair decreases less than 20.00, the sellers can challenge SMA for 200 days in 19.62.

On the contrary, if the US dollar/MXN rises after SMA for 100 days, buyers can be lured with the SMA challenge for 50 days at 20.47. Once it is exceeded, the sign of 20.50 is after that.