• USD/MXN strengthened on Thursday as Mexican peso weakened after Mexican inflation data fueled bets that Banxico could keep cutting interest rates.
•Data showed, Mexico's annual inflation eased to 4.21% in December from 4.55% in November, despite core CPI rising to 3.65%.
• Emerging market currencies struggled in 2024 amid concerns over higher U.S. rates and Trump’s tariff threats, with the Mexican peso particularly pressured due to its heavy reliance on U.S. trade.
• At GMT 15:45, the pair was trading up 0.20% at 20.450.
• Immediate resistance is located at 20.545 (38.2%fib), any close above will push the pair towards 20.887(23.6%fib).
• Support is seen at 20.405(38.2%fib) and break below could take the pair towards 20.276(50%fib).
Recommendation: Good to buy around 20.410 with stop loss of 20.200 and target price of 20.600