USD/MXN seesaws near 19.70 amid White House talks on US/Mexican immigration

• US tariffs on Mexican products to go live on Monday while further talks still underway.
• President Donald Trump might declare a national emergency to impose tariffs.
• US employment data and tariff talks in the spotlight.

With the White House talks on the illegal immigration from Mexico still in the pipeline, and are negative off-late, the USD/MXN pair remains volatile around 19.70 at the start of Friday’s Asian session.

During the second day of the US-Mexico talks to avoid 5% US tariff on Mexican goods, the lawmakers remained optimistic at the beginning before taking a break till 5:30 ET.

However, the scenario changed then after as the White House press secretary Sarah Huckabee Sanders conveyed that the US will continue moving forward with its tariffs on Mexico that takes place from Monday. Though, the talks are on.

Soon after the announcement, the US Vice President Mike Pence was also on wires confirming extended talks and no change of position to levy tariffs on Mexico even if progress was made in talks.

It was also reported that Fitch downgraded Mexico’s state-owned petroleum company’s, Pemex, credit rating after the global rating agency scaled back the country’s macro credit status.

Furthermore, the Hill reported that President Trump plans to declare a new national emergency to impose tariffs on Mexico.

On the other hand, the US Dollar (USD) recovered some of its earlier losses after Federal Reserve Bank of New York President John Williams sound optimistic for the world’s largest economy.

In addition to developments on the tariff talks, the US monthly employment numbers will also be the key to follow during the rest of the day.

Technical Analysis

Unless clearing 19.88, the pair is less likely to aim for 20.00 and 20.38/40 resistance region while 19.51 and 200-day simple moving average (SMA) level of 19.36 act as strong downside support.