USD/MXN back below 15.00

FXStreet (Edinburgh) - The Mexican peso is now recovering part of the ground lost to the greenback, dragging USD/MXN back to the area sub-15.00.

USD/MXN testing 4-week lows

The pair is retreating for the fourth consecutive week so far, coming down from recent multi-year tops near 15.7000 amidst an increasing selling tone in the US dollar.

In the data space, Mexican 1st Half-Month CPI came in at 0.18% for the present month, missing forecasts for a 0.21% gain albeit higher than the 0.11% previous; the Core print followed suit, at 0.15% vs. 0.20% estimated and 0.28% previous.

In the US economy, inflation figures tracked by the CPI, Markit’s manufacturing PMI and New Home Sales all came in above expectations, somewhat supporting the USD.

USD/MXN significant levels

The pair is now advancing 0.19% at 14.9582 and a surpass of 15.0140 (high Mar.24) would expose 15.1668 (50% of 15.3555-14.9785) and then 15.6690 (high Mar.11). On the downside, the next support lies at 14.9270 (low Mar.23) ahead of 14.9070 (low Feb.27) and then 14.8691 (daily cloud top).

Continue to expect medium-term gradual depreciation in RMB – JPM

The Team at J.P.Morgan, maintains their medium-term depreciation view on RMB as China’s growth slows down, and further anticipate USD/CNY to drift higher towards 6.40 by year-end.
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