FxWirePro: USD/MXN downside pressure builds, key support level in focus

• USD/MXN dipped on Wednesday  as dollar weakened after softer-than-expected U.S. inflation data.

• Data showed consumer prices increased only marginally in May, but inflation is expected to accelerate in the coming months due to the Trump administration's import tariffs.

• The Consumer Price Index (CPI) increased 0.1% last month after rising 0.2% in April, the Labor Department's Bureau of Labor Statistics (BLS) said.

• Following the consumer pricing data, traders of short-term interest-rate futures priced in a 70% chance of a quarter-point reduction in the Fed policy rate by September, compared with 57% earlier.

.• At GMT 18:42, the pair was trading down  0.79 percent  at 18.900

•  Immediate resistance is located at 19.055(Daily high), any close above will push the pair towards 19.241(38.2%fib).

• Support is seen at 18.835 (Daily low) and break below could take the pair towards 18.691(23.6%fib).

Recommendation: Good to sell around 18.900 with stop loss of 19.300 and target price of 18.650