USD/MXN recovers from lows

FXStreet (Edinburgh) - The Mexican peso is now shedding some of the earlier gains vs. its northern neighbor on Wednesday, taking USD/MXN to the 15.25 area.

USD/MXN bounces off 15.20

The pair dropped to fresh lows in the proximity of the 15.20 level after the US economy expanded less than previously estimates, 0.2% on an yearly basis during the first quarter vs. expectations for a 1.0% gain.

The pair will remain under pressure however, in light of the upcoming results from US Pending Home Sales followed by the more relevant FOMC meeting.

USD/MXN levels to watch

The pair is now losing 0.12% at 15.2384 and a breakdown of 15.1883 (low Apr.28) would open the door to 15.1149 (low Apr.16) and finally 15.0717 (low Apr.10). On the flip side, the initial hurdle lines up at 15.3924 (high Apr.28) ahead of 15.4326 (high Apr.27) and then 15.4918 (high Apr.21).

Treasury yields inch higher despite weak GDP report

The yields on the short duration and long duration treasury yields in the US extended gains even though the first estimate of the first quarter US GDP report showed a sharp slowdown in the economic activity.
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US growth disappoints, dollar pays price – BBH

Mark Chandler, Global Head of Currency Strategy at Brown Brothers Harriman, reviews the US GDP release, noting that the Dollar faced the brunt of much weaker than anticipated Q1 growth data, with investment falling 2.5%, seeing the biggest decline since 2009.
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