• USD/MXN strengthened on Friday as renewed tariff threats from U.S. President Donald Trump lifted the dollar and pressured emerging market currencies like the peso.
• Trump escalated his trade war on Thursday by announcing a 35% tariff on Canadian imports effective August 1, while proposing blanket tariff hikes of 15%–20% on other nations, up from the current 10% baseline.
• Trump surprised markets this week by threatening to impose 50% duties on both Brazilian exports and copper imports to the U.S., delivering a double blow to Brazil's trade outlook.
• At GMT 17:21,the dollar was up 0.18 % at 18.635 against South African rand.
• Technical highlight downside risks for USD/MXN, with momentum studies, 5, 10 and 11 DMAs tracking south.
• Immediate resistance is located at 18.820 (20SMA), any close above will push the pair towards 18.982(38.2%fib).
• Support is seen at 18.560(23.6%fib) and break below could take the pair towards 18.475(Lower BB).
Recommendation: Good to sell around 18.650 with stop loss of 19.200 and target price of 18.400
