- The Mexican pesos is losing strength after outperforming on Thursday.
- The USD / MXN finds support at 23.70 / 75, moving towards a small weekly gain.
The USD / MXN was up on Friday after posting losses on Thursday following a rate cut of 50 basis points from the Bank of Mexico. The pair was testing yesterday’s low around 23.75 and rebounded higher in the US session, climbing above 24.00.
The Bank of Mexico lowered its key rate to 5.5%, the lowest level in more than three years. The central bank has left the door open for further rate cuts. Analysts see more action from Banxico to stimulate the economy and inflation remains under control.
Economic data in the U.S. has shown a decline retail sales who hit the US dollars. The greenback has weakened, erasing gains and over the past few hours it has stabilized at all levels, contributing to the USD / MXN rebound.
The USD / MXN continues to move between 23.70 and 24.40, within a consolidation range. Short term, resistance levels can be seen at 24.15, followed by 24.30, then comes the upper limit of the range. On the other hand, the immediate support is at 23.90, then comes the bottom below 23.74 / 75 (lowest on May 12, 14 and 15).