FxWirePro: Oil price rebound overnight supports MXN, USD/MXN takes a breather from record highs at 18.80

USD/MXN edges slightly lower from all-time highs at 18.80 hit on Thursday, oil prices saw a solid recovery overnight, supporting the Mexican Peso.

• Oil prices did not falter despite U.S. inventories data showing a larger-than-expected rise in record high crude and gasoline stockpiles.
   
• Buying interest was seen among traders who had feared the figures could be even worse, U.S. crude briefly vaulted back to $30, while WTI futures settled up 4.16 percent, or $1.18, at $29.53 a barrel.
   
• The tumble in Mexico's peso through 2015 is spurring speculation that the central bank will step up efforts to support the currency, current market conditions do not warrant an active approach.
   
• USD/MXN is currently trading at 158.6680, largely range-bound on the day, 18.7567/6645 range till now.
   
• 18.4767 (5-DMA) is immediate support on the downside ahead of 18.4257 (Jan 21st lows).
   
• We see no shift in momentum for now, bulls to take the pair higher, dips could be used as buying opportunities