The dollar gained against the Mexican peso about 0.3% in today’s European trading session while the rate USD/MXN got balanced around the Year’s upper value extreme as the greenback got boosted by the interest hikes and the recent one with 0.75bps. However, dollar buyers might get absorbed by peso buyers around the mentioned Year’s DVAH as the market closed with swing failures on the daily periodicity.

The intraday perspective found dollar buyers around the lower weekly value extreme and might targeting rotations towards the upper DVAH while yesterday’s VWAP close level and today’s DVAH serving as resistance or support for peso buyers. For the moment the target for the greenback may be above the session’s swing highs, boosted by the mentioned interest rate hike by the U.S FED.

Mexico’s central bank needs to fight inflation, therefore it may raise its benchmark interest rate by 75 basis points around the 23rd of June. The Bank of Mexico raised its interest rate to 7% in May, it’s eighth consecutive hike, with a inflation target of 3%.