Forex Market: USD/MXN daily forecast

During yesterday’s trading session USD/MXN traded within the range of 12.9398-13.0733 and closed at 13.0721.

At 7:10 GMT today USD/MXN was losing 0.05% for the day to trade at 13.0441. The pair touched a daily low at 13.0380 at 6:07 GMT.

Fundamental view

The annualized index of consumer prices (CPI) in Mexico probably slowed down to 3.79% in March, according to the median forecast by experts, from 4.23% in February. The index measures the change in price levels of a basket of goods and services from consumers perspective and also reflects purchasing trends. In case the CPI rose more than projected, this would have a bullish effect on Mexican peso. Insituto Nacional de Estadistica Y Geografia is expected to release the official report at 13:00 GMT.

At 18:00 GMT the Federal Open Market Committee (FOMC) will release the minutes from its meeting on policy held on March 18th-19th. The minutes offer detailed insights on FOMCs monetary policy stance. This release is closely examined by traders, as it may provide clues over interest rate decisions in the future. High volatility is usually present after the publication.

At 19:30 GMT Fed President for Chicago Charles Evans is expected to take a statement. He was a FOMC voting member in September – December 2007, 2009 and 2011. Statements by FOMC members attract investors attention, as they may offer clues over the possible direction of monetary policy in the future. Evanss remarks may indicate a positive or negative trend in a short term.

Technical view

According to Binary Tribune’s daily analysis, in case USD/MXN manages to breach the first resistance level at 13.1169, it will probably continue up to test 13.1619. In case the second key resistance is broken, the pair will probably attempt to advance to 13.2505.

If USD/MXN manages to breach the first key support at 12.9834, it will probably continue to slide and test 12.8949. With this second key support broken, the movement to the downside will probably continue to 12.8500.