FXStreet (Córdoba) – The Mexican peso is falling against the US dollar for the fourth trading day in a row. Earlier USD/MXN reached at 16.91, the highest level since October 2. The pair holds a strong bullish tone and currently is trading around 16.90.
Last week the pair tested a key support located at 16.35, that capped the downside during the last two months, but then bounced sharply to the upside, to test the upper limit of the short-term range. After the US employment report broke the resistance around 16.70 and jumped to 16.87; then pulled back and today after finding support at 16.78 resumed the upside and rose toward fresh highs.
Mexico: Inflation as expected
Official data released today showed that the Consumer Price Index (CPI) rose in Mexico in October 0.50%, in line with expectations and above the 0.37% registered the last month. The annual rate fell from 2.52% to 2.48%, hitting a new record low for the seventh month in a row. The core rate rose 0.25%.
Despite CPI holding at record low level, the central bank of Mexico could raise rates at the next meeting in December if the Federal Reserve starts the hike cycle.
(Market News Provided by FXstreet)