The Mexican Peso has rallied sharply against the US Dollar, driven by the Federal Reserve’s announcement of an impending interest rate cut. The US Dollar has weakened significantly, with the DXY index falling to a new yearly low.
The Mexican Peso’s gains are also supported by the recent release of positive economic data, including a decline in inflation and stronger-than-expected GDP growth. However, the Banco de Mexico remains cautious about the outlook and has not ruled out further interest rate cuts.
Technical Outlook
The USD/MXN pair is under pressure, with a potential for further declines. A break below the 19.00 level could signal a stronger downward movement, with support at 18.45 and 18.00. However, the pair’s recent upward momentum suggests a potential for a recovery.