The Mexican Peso (MXN) weakened slightly at the start of the new week, despite positive economic indicators from both Mexico and the United States.

Key Factors:

• US Economic Data: Strong US Nonfarm Payrolls data and a decline in the unemployment rate have reduced expectations for aggressive Fed rate cuts.
• Mexican Economic Data: Mexico’s automobile production and exports increased in September, while the unemployment rate rose slightly.
• Judicial Reforms: Concerns about potential reforms proposed by former President Andres Manuel Lopez Obrador have eased after a recent court ruling.
• Geopolitical Risks: The ongoing tensions in the Middle East continue to create uncertainty in the market.

Technical Analysis:

• Downward Trend: The USD/MXN pair is facing downward pressure, with a potential break below the 50-day Simple Moving Average (SMA).
• Support Levels: A break below the 19.00 level could lead to further declines, with potential support at 18.60.

Overall Outlook:

The Mexican Peso is likely to remain volatile, influenced by geopolitical risks, economic data, and the Federal Reserve’s monetary policy. Traders should monitor technical indicators for signs of a trend reversal.