Mexican Peso rises 0.26% against US Dollar and dives below 16.60. Weak March Retail Sales data from INEGI ahead of Q1 GDP release and Banxico minutes. Banxico Deputy Governor Espinosa's hawkish stance contrasts with US Fed's cautious optimism on disinflation. Although Mexican Retail Sales data plunged, the Mexican currency edged up on Deputy Governor Irene Espinosa's hawkish comments last Friday. The USD/MXN trades at 16.56, down 0.26%.
60 The Mexican Peso continues to rally sharply as the USD/MXN downtrend extends, likely to test the psychological 16.50 figure. Momentum, as depicted by the Relative Strength Index , favors sellers, yet they seem to take a breather as the downward move stalled. Once the USD/MXN falls below 16.50, the next stop would be the current year-to-date low of 16.25. Conversely, if buyers reclaim the 50-day SMA at 16.76, it could exacerbate a rally toward the 100-day SMA at 16.91.