The Mexican peso is appreciating against the dollar and the euro. LATAM currencies looking strong.

Traders are opting for caution as they await new data on prices (the Personal Consumption Expenditures Price Index) in the United States, which will be released on Thursday and are significant for the Fed.

On the local front, traders are anticipating the quarterly report from the Bank of Mexico, scheduled for release on Wednesday. Its contents will provide an update on the central bank’s expectations regarding inflation, GDP, and interest rates, following the latest data.

From a technical standpoint, the currency has remained stable in recent sessions but has been unable to break the support level of 17 units. This could lead to a rebound towards the resistance zone, at around 17.25 units per greenback. Breaking the 17-peso barrier appears challenging, and there’s a risk that further pressure may be exerted in the coming days, testing the 200-day average at 17.25, as it has done in previous rebounds.