FxWirePro: USD/MXN falls as peso gains on Tariff exemption

• USD/MXN declined  on Thursday  as peso strengthened as investors cheered a one-month U.S. tariff exemption for the country.

• Mexican goods covered under the North American trade pact will be exempt from the 25% U.S. tariffs for one month following a discussion between the leaders of both countries.

• The temporary exemption follows remarks from U.S. Commerce Secretary Howard Lutnick, which fueled investor optimism that the tariffs may be less strict than initially expected, allowing room for negotiations.

• At GMT 21:22, the dollar was down 0.50% against the dollar Mexico's peso   at 20.314

•  Immediate resistance is located at 20.439(38.2%fib), any close above will push the pair towards 20.597(50%fib).

•  Support is seen at 20.232(23.6%fib) and break below could take the pair towards 20.159(Lower BB).

Recommendation: Good to sell around 20.350, with stop loss of 20.600 and target price of 20.150