Forex Market: USD/MXN daily trading forecast

Yesterday’s trade saw USD/MXN within the range of 14.2820-14.4597. The pair closed at 14.3818, gaining 0.12% on a daily basis.

At 8:03 GMT today USD/MXN was up 0.07% for the day to trade at 14.3915. The pair touched a daily high at 14.4292 at 7:15 GMT.

Fundamentals

United States

Job Openings and Labor Turnover Survey

The number of job openings in the United States probably rose to 4.823 million in October from 4.735 million in the prior month. This indicator refers to all positions that are open, but not filled on the last business day of the month. Job openings are part of the Job Openings and Labor Turnover Survey (JOLTS), which gathers data from about 16 400 non-farm establishments including retailers and manufacturers, as well as federal, state, and local government entities in the 50 states and the District of Columbia. The survey assesses the unmet demand for labor in the labor market. Higher-than-projected number of openings is usually dollar positive. The Bureau of Labor Statistics is to release the official data at 15:00 GMT.

Mexico

Consumer inflation

The annualized consumer inflation in Mexico probably accelerated to 4.35% in November, according to the median forecast by experts, from 4.30% in October, with the latter being the highest level since January, when annual inflation was reported at 4.48%. In October inflation rate was boosted by higher food prices. On annual basis, prices of food and non-alcoholic beverages marked the largest increase, or 6.5%, followed by alcoholic beverages and tobacco (up 6.35%), restaurant and hotels (up 6.31%) and transport costs (up 6.10%). Cost of communications, on the other hand, dropped at an annualized rate of 4.26% in October, according to the report by Mexicos statistics department.

Key categories, included in Mexican Consumer Price Index (CPI), are Non-food Goods (accounting for 19.7% of the total weight), Housing (18.7%) and Other Services (18.4%). Other categories include Food, Beverages and Tobacco (14.8%), Energy (9.5%), Products subsidized by the government (5.3%), Education (5.1%), Meat and Eggs (4.8%) and Fruits and Vegetables (3.7%).

In case the CPI accelerated more than projected, this would have a bullish effect on the peso. Insituto Nacional de Estadistica Y Geografia is expected to release the official report at 14:00 GMT.

Pivot Points

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 14.3745. In case USD/MXN manages to breach the first resistance level at 14.4670, it will probably continue up to test 14.5522. In case the second key resistance is broken, the pair will probably attempt to advance to 14.6447.

If USD/MXN manages to breach the first key support at 14.2893, it will probably continue to slide and test 14.1968. With this second key support broken, the movement to the downside will probably continue to 14.1116.

The mid-Pivot levels for today are as follows: M1 – 14.1542, M2 – 14.2431, M3 – 14.3319, M4 – 14.4208, M5 – 14.5096, M6 – 14.5985.

In weekly terms, the central pivot point is at 14.2272. The three key resistance levels are as follows: R1 – 14.5863, R2 – 14.8137, R3 – 15.1728. The three key support levels are: S1 – 13.9998, S2 – 13.6407, S3 – 13.4133.