Mexico’s economic activity pushes the peso higher on the headlines
In Mexico today the Instituto Nacional de Estadistica y Geografia reported that the Mexican Economic Activity jumped 1.69% compared to the previous reading of 0.039%.
The jump to 1.69% was a surprise as analysts were looking for an increase of only 1.15% last month sending the USD/MXN as low as 12.94630 on the news or roughly 200 plus pips lower as the Mexican peso strengthen.
As with most large currency moves' resulting from headlines the peso has now moved back to the flat line for the session as traders digest and determine how to invest as a result of the news.
Look for the currency pair to return to its previous trend. Only time will tell but the daily chart seems to just finished a head and shoulders pattern with a inverse of the same pattern now forming.