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17 May 2013
Forex: USD/MXN testing session highs
FXstreet.com (Barcelona) - The Mexican peso is losing ground against its neighbour on Friday, after the economic activity in the Aztec economy expanded less than forecasts in the first quarter: 0.5% QoQ and 0.8% YoY, vs. 0.8% and 3.2% respectively.
“If data continue to come in soft in Q2 and Q3, then a rate cut will become very likely in Q3 or Q4. However, with inflation of 4.7% y/y still well above the 2-4% target range, easing won't be imminent and we see no move at the June 7 meeting”, noted the BBH Global Currency Strategy Team.
The pair is now advancing 0.42% at 12.3356 and a surpass of 12.4786 (MA100d) would bring 12.6440 (weekly high Mar. 15)
On the other hand, support levels line up at 12.2448 (MA50d) ahead of 12.1598 (MA21d).
“If data continue to come in soft in Q2 and Q3, then a rate cut will become very likely in Q3 or Q4. However, with inflation of 4.7% y/y still well above the 2-4% target range, easing won't be imminent and we see no move at the June 7 meeting”, noted the BBH Global Currency Strategy Team.
The pair is now advancing 0.42% at 12.3356 and a surpass of 12.4786 (MA100d) would bring 12.6440 (weekly high Mar. 15)
On the other hand, support levels line up at 12.2448 (MA50d) ahead of 12.1598 (MA21d).