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24 Apr 2013
Forex: USD/MXN inching higher after CPI data
FXstreet.com (Barcelona) - The Mexican peso is losing ground against its neighbour on Wednesday, after the first 15-day inflation figures in the Aztec economy contracted 0.09% in April, while the Core print advanced 0.05%.
In light if the next MPC meeting on Friday, and according to analysts at TD Securities, the country has well managed to stay in line with the inflation target of 3%, “Mainly on this, and on expectations that inflation will hover slightly above 3.5% in the foreseeable future, we believe the overnight rate will remain unchanged until end-2014 rate will remain unchanged until end-2014.”
At the moment, the cross is up 0.27% at 12.2793 with the next resistance at 12.3025 9high Apr.19) followed by 12.3535 (high Apr.22) and finally 12.3750 (high Apr.23).
On the flip side, a breach of 12.2035 (MA10d) would expose 12.1467 (MA200h) and then 12.0625 (low Apr.15).
In light if the next MPC meeting on Friday, and according to analysts at TD Securities, the country has well managed to stay in line with the inflation target of 3%, “Mainly on this, and on expectations that inflation will hover slightly above 3.5% in the foreseeable future, we believe the overnight rate will remain unchanged until end-2014 rate will remain unchanged until end-2014.”
At the moment, the cross is up 0.27% at 12.2793 with the next resistance at 12.3025 9high Apr.19) followed by 12.3535 (high Apr.22) and finally 12.3750 (high Apr.23).
On the flip side, a breach of 12.2035 (MA10d) would expose 12.1467 (MA200h) and then 12.0625 (low Apr.15).