{"id":185358,"date":"2023-11-01T22:34:02","date_gmt":"2023-11-01T17:04:02","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=185358"},"modified":"2023-11-01T22:34:02","modified_gmt":"2023-11-01T17:04:02","slug":"mexican-peso-advances-steadily-after-us-data-pressures-the-us-dollar-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/mexican-peso-advances-steadily-after-us-data-pressures-the-us-dollar-crypto-news\/","title":{"rendered":"Mexican Peso advances steadily after US data pressures the US Dollar &#8211; Crypto News"},"content":{"rendered":"<p><\/p>\n<div id=\"fxs_article_content\">\n<p>\n                        <span class=\"fxs_socialmedia_bar_share_label\">Share:<\/span><\/p>\n<ul>\n<li><strong>Mexican Peso buyers are in charge after the USD\/MXN slump below the 18.00 figure.<\/strong><\/li>\n<li><strong>Mexico&#8217;s Business Confidence improved in October, rising to 54 from September&#8217;s 53.8.<\/strong><\/li>\n<li><strong>Weak US economic data, including lower-than-expected ADP Employment Change and a drop in ISM Manufacturing PMI, put pressure on the USD.<\/strong><\/li>\n<li><strong>Traders brace for US Federal Reserve monetary policy decision around 18:00 GMT.<\/strong><\/li>\n<\/ul>\n<p>The Mexican Peso (MXN) gathered traction against the US Dollar (USD) on Wednesday as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/technical-analysis\/sentiment\">market sentiment<\/a> shifted positively due to a tranche of weaker-than-expected economic data from the United States, which weighed on the Greenback (USD). Therefore, the USD\/MXN is falling 0.74%, trading at 17.90, well below the psychological 18.00 figure.<\/p>\n<p>The <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/economic-calendar\/united-states\">US economic docket<\/a> was packed on Wednesday. First, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/news\/us-private-sector-employment-rises-113-000-in-october-vs-150-000-expected-202311011222\">ADP Employment Change<\/a> revealed by Automatic Data Processing (ADP) showed the economy adding 113K private jobs, above September\u2019s 89K but missing estimates of 150K.<\/p>\n<p>The Institute of Supply Management (ISM) recently announced that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/news\/us-ism-manufacturing-pmi-declines-to-467-in-october-vs-49-expected-202311011405\">October\u2019s Manufacturing PMI<\/a> witnessed a drop below the 50 contraction\/expansion midline, at 46.7 for the previous twelve months in a row, below the consensus and September\u2019s 49.0 reading. The ISM report revealed that prices paid by producers are climbing, putting the US <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/news\/us-interest-rate-decision-preview-federal-reserve-expected-to-stand-pat-for-second-consecutive-meeting-202311011300\">Federal Reserve<\/a> (Fed) under pressure to continue tightening interest rates to curb stubbornly high inflation in exchange for harming the economy.<\/p>\n<p>In other data, the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/news\/us-quarterly-refunding-treasury-increases-auction-sizes-slightly-less-than-expected-202311011334\">US Treasury Department announced its quarterly refunding<\/a>, with auctions increasing less than expected, sparking a rally in US <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/bonds\">bonds<\/a>.<\/p>\n<p>After the data, the US 10-year Treasury bond yield plunged 15 basis points, from 4.935% to 4.787%, while <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/currencies\/us-dollar-index\">the US Dollar Index<\/a> (DXY) \u2013 a gauge of the buck\u2019s value against a basket of six currencies \u2013 dropped from the daily high of 107.09 to 106.66, losing 0.04%.<\/p>\n<p>Additional data from the US Department of Labor revealed <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fxstreet.com\/news\/us-jolts-preview-job-openings-expected-to-resume-downward-trend-in-september-202311010900\">that job openings in September<\/a> rose by 9.553 million, above estimates of 9.25 million and August\u2019s 9.497 million vacancies reported a month ago.<\/p>\n<p>Aside from this, S&amp;P Global revealed Mexico&#8217;s October Manufacturing PMI, which showed an improvement from 49.8 to 52.1, but the main headlines are around Acapulco\u2019s tragedy after Hurricane Otis. Mexican President Lopez announced a recovery plan, including tax breaks, financial assistance and social welfare payments. The Mexican Finance Minister said that 61 billion pesos in investment would be required for Acapulco.<\/p>\n<h2 class=\"fxs_headline_medium\">Daily digest movers: Mexican Peso rallies sharply as the USD\/MXN falls off cliff below 17.95<\/h2>\n<ul>\n<li>US ADP Employment Change in October climbed to 113K, better than the previous month, but missed forecasts of 150K.<\/li>\n<li>The ISM Manufacturing PMI dropped to recessionary territory at 46.7 in October, below forecasts and September\u2019s 49 reading.<\/li>\n<li>September\u2019s JOLTs job report showed openings rose by 9.553 million, above forecasts of 9.25 million, and August\u2019s 9.497 million.<\/li>\n<li>Mexico\u2019s Business Confidence in October improved to 54 from 53.8.<\/li>\n<li>Mexico S&amp;P Global October Manufacturing PMI at 52.1, above September\u2019s 49.8.<\/li>\n<li>Mexico\u2019s Gross Domestic Product grew by 0.9% QoQ in the third quarter on its preliminary reading, above the previous quarter and estimates of 0.8%.<\/li>\n<li>On a yearly basis, Mexico\u2019s GDP for Q3 expanded 3.3%, above forecasts of 3.2% but trailing the previous 3.6%.<\/li>\n<li>According to Enki Research, a firm specializing in natural disasters, the first estimates of Hurricane Otis&#8217;s damages are around $10 to 15 billion.<\/li>\n<li>Mexican authorities reported that around 270,000 houses in Acapulco were affected or destroyed, while 80% of hotels were severely damaged.<\/li>\n<li>The US agenda will feature the Fed\u2019s decision and Chair Jerome Powell\u2019s press conference.<\/li>\n<li>On October 24, Mexico&#8217;s National Statistics Agency, INEGI, reported annual headline inflation hit 4.27%, down from 4.45% at the end of September, below forecasts of 4.38%.<\/li>\n<li>Mexico\u2019s core inflation rate YoY was 5.54%, beneath forecasts of 5.60%.<\/li>\n<li>The Bank of Mexico (Banxico) held rates at 11.25% in September and revised its inflation projections from 3.50% to 3.87% for 2024, above the central bank\u2019s 3.00% target (plus or minus 1%). The next decision will be announced on November 9.<\/li>\n<\/ul>\n<h2 class=\"fxs_headline_medium\">Technical Analysis: Mexican Peso buyers target the 200-day Simple Moving Average<\/h2>\n<p>The USD\/MXN uptrend is at the risk of being reversed as the exotic pair plunged below 18.00, leaving the 20-day Simple Moving Average (SMA) standing behind at 18.10. The risk is rising that the 200-day SMA at 17.72 is about to be tested.<\/p>\n<p>A breach of the last and subsequent support would be the 50-day SMA at 17.58. On the flip side, USD\/MXN buyers must reclaim the 18.00 psychological figure to have a chance of reclaiming the 20-day SMS at 18.10 before targeting the October 26 high at 18.42 before challenging last week\u2019s high at 18.46, ahead of the 18.50 figure.<\/p>\n<p><!--FAQ CONTENT MODULE STARTS HERE--><\/p>\n<div data-cnt-module-topic=\"rates\" data-cnt-module-type=\"faq\" id=\"content-module-faq-rates\">\n<div class=\"fxs-content-module-wrapper\">\n<h2 class=\"fxs-content-module-title\">Interest rates FAQs<\/h2>\n<section class=\"fxs-content-module-section\">\n<p class=\"fxs-content-module-content\">Interest rates are charged by financial institutions on loans to borrowers and are paid as interest to savers and depositors. They are influenced by base lending rates, which are set by central banks in response to changes in the economy. Central banks normally have a mandate to ensure price stability, which in most cases means targeting a core inflation rate of around 2%.<br \/>If inflation falls below target the central bank may cut base lending rates, with a view to stimulating lending and boosting the economy. If inflation rises substantially above 2% it normally results in the central bank raising base lending rates in an attempt to lower inflation.<\/p>\n<\/section>\n<section class=\"fxs-content-module-section\">\n<p class=\"fxs-content-module-content\">Higher interest rates generally help strengthen a country\u2019s currency as they make it a more attractive place for global investors to park their money.<\/p>\n<\/section>\n<section class=\"fxs-content-module-section\">\n<p class=\"fxs-content-module-content\">Higher interest rates overall weigh on the price of Gold because they increase the opportunity cost of holding Gold instead of investing in an interest-bearing asset or placing cash in the bank.<br \/>If interest rates are high that usually pushes up the price of the US Dollar (USD), and since Gold is priced in Dollars, this has the effect of lowering the price of Gold.<\/p>\n<\/section>\n<section class=\"fxs-content-module-section\">\n<p class=\"fxs-content-module-content\">The Fed funds rate is the overnight rate at which US banks lend to each other. It is the oft-quoted headline rate set by the Federal Reserve at its FOMC meetings. It is set as a range, for example 4.75%-5.00%, though the upper limit (in that case 5.00%) is the quoted figure.<br \/>Market expectations for future Fed funds rate are tracked by the CME FedWatch tool, which shapes how many financial markets behave in anticipation of future Federal Reserve monetary policy decisions.<\/p>\n<\/section>\n<\/div>\n<p><!--FAQ CONTENT MODULE ENDS HERE--><\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share: Mexican Peso buyers are in charge after the USD\/MXN slump below the 18.00 figure. Mexico&#8217;s Business Confidence improved in October, rising to 54 from September&#8217;s 53.8. Weak US economic data, including lower-than-expected ADP Employment Change and a drop in ISM Manufacturing PMI, put pressure on the USD. Traders brace for US Federal Reserve monetary [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":51510,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,276,2070,255,250,252,247,253,249,5212,871,256,254],"class_list":["post-185358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-currencies","tag-emergingmarkets","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-seo","tag-usdmxn","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/185358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=185358"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/185358\/revisions"}],"predecessor-version":[{"id":185360,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/185358\/revisions\/185360"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/51510"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=185358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=185358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=185358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}