• USD/MXN rebounded on Tuesday as investors digested U.S. inflation data and monitored ongoing U.S. trade negotiations.
• U.S. consumer prices rose in June, potentially signaling the onset of the long-expected tariff-driven inflation in the world’s largest economy.
•The inflation uptick likely reflects tariff pressures, reinforcing, but not escalating the Fed’s cautious stance.
• President Donald Trump escalated his trade war over the past week by announcing broad tariffs on several emerging markets—including Asia, Brazil, and Mexico—set to take effect on August 1.
• However, markets took comfort in Trump’s openness to further negotiations, raising hopes that final tariff levels could be scaled back through diplomacy..
• At GMT 16:38,the dollar was up 0.71 % at 18.863 against peso.
• Immediate resistance is located at 18.951 (38.2%fib), any close above will push the pair towards 19.157(Higher BB).
• Support is seen at 18.583(23.6%fib) and break below could take the pair towards 18.453(Lower BB).
Recommendation: Good to sell around 18.800 with stop loss of 18.400 and target price of 19.400
