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Peso Strengthens As Banxico Looms While Mexico Stocks Slip From Records
(MENAFN- The Rio Times) Key Points:
USD/MXN traded near 17.993 as the dollar stayed soft and Banxico's Dec. 18 decision dominated the local calendar.
The S&P/BMV IPC fell 1.70% to 63,230.87, led lower by banks and consumer bellwethers after record highs.
Charts show fading downside momentum in USD/MXN, but the broader trend still favors the peso.
Mexico's peso opened higher, with USD/MXN around 17.993 at 08:07 UTC, near the lower end of a two-day slide in the dollar.
The move tracked a weaker greenback-the dollar index hovered near 98.39-while traders digested U.S. labor signals; one FX strategist called the message“virtually unactionable for January.”
Banxico's benchmarks framed the tone: the day's FIX was 17.9525 and the“obligations” rate 17.9925, close to spot. With the policy meeting on Thursday, UBS expects a 25-bp cut to 7.00% and says the key question is whether that becomes a pause.
Felipe Mendoza of IMB Capital Quants said trading looked“orderly” and flagged a near-term corridor of 17.90 to 18.05. On the charts, the longer timeframe still reads as a downtrend in USD/MXN, with the daily RSI near oversold territory.
The 4-hour view is less extreme: RSI has rebounded into the low-40s and MACD is improving, consistent with selling pressure cooling rather than reversing.
Support sits near 17.96 and 17.90. Resistance begins around 18.05, then 18.11–18.12, with a larger ceiling near 18.33. Mexico's stock market told a different story.
The S&P/BMV IPC closed at 63,230.87, down 1.70%, on volume of 181,538,394, retreating for a second session after record levels. Gabriela Siller of Banco Base called it the index's sharpest daily drop since Nov. 12, in a session she said echoed a broader risk-off tone.
Top gainers included Bolsa Mexicana de Valores (BOLSAA) +2.29%, Qualitas (Q) +1.89%, Televisa (TLEVISACPO) +1.75%, Becle (CUERVO) +1.30%, and Peñoles (PEOLES) +0.21%. The biggest decliners were Banorte -4.37%, Banco del Bajío (BBAJIOO) -4.31%, Genomma Lab -3.07%, Walmex -3.04%, and Orbia -2.65%.
For international investors, the U.S.-listed iShares MSCI Mexico ETF (EWW) closed at $68.28 on about 3.07 million shares, underscoring how quickly Mexico exposure can swing when rates, the dollar, and risk appetite move together.
USD/MXN traded near 17.993 as the dollar stayed soft and Banxico's Dec. 18 decision dominated the local calendar.
The S&P/BMV IPC fell 1.70% to 63,230.87, led lower by banks and consumer bellwethers after record highs.
Charts show fading downside momentum in USD/MXN, but the broader trend still favors the peso.
Mexico's peso opened higher, with USD/MXN around 17.993 at 08:07 UTC, near the lower end of a two-day slide in the dollar.
The move tracked a weaker greenback-the dollar index hovered near 98.39-while traders digested U.S. labor signals; one FX strategist called the message“virtually unactionable for January.”
Banxico's benchmarks framed the tone: the day's FIX was 17.9525 and the“obligations” rate 17.9925, close to spot. With the policy meeting on Thursday, UBS expects a 25-bp cut to 7.00% and says the key question is whether that becomes a pause.
Felipe Mendoza of IMB Capital Quants said trading looked“orderly” and flagged a near-term corridor of 17.90 to 18.05. On the charts, the longer timeframe still reads as a downtrend in USD/MXN, with the daily RSI near oversold territory.
The 4-hour view is less extreme: RSI has rebounded into the low-40s and MACD is improving, consistent with selling pressure cooling rather than reversing.
Support sits near 17.96 and 17.90. Resistance begins around 18.05, then 18.11–18.12, with a larger ceiling near 18.33. Mexico's stock market told a different story.
The S&P/BMV IPC closed at 63,230.87, down 1.70%, on volume of 181,538,394, retreating for a second session after record levels. Gabriela Siller of Banco Base called it the index's sharpest daily drop since Nov. 12, in a session she said echoed a broader risk-off tone.
Top gainers included Bolsa Mexicana de Valores (BOLSAA) +2.29%, Qualitas (Q) +1.89%, Televisa (TLEVISACPO) +1.75%, Becle (CUERVO) +1.30%, and Peñoles (PEOLES) +0.21%. The biggest decliners were Banorte -4.37%, Banco del Bajío (BBAJIOO) -4.31%, Genomma Lab -3.07%, Walmex -3.04%, and Orbia -2.65%.
For international investors, the U.S.-listed iShares MSCI Mexico ETF (EWW) closed at $68.28 on about 3.07 million shares, underscoring how quickly Mexico exposure can swing when rates, the dollar, and risk appetite move together.
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