• USD/MXN is eyeing more weakness below 18.10 as USD Index has witnessed exhaustion in the upside momentum.
• The USD Index is struggling to expand gains further as investors are ignoring volatility ahead of US inflation data.
• USD/MXN is expected to continue further downside amid Darvas Box formation.

The USD/MXN pair has gauged an intermediate cushion after a sheer downside around 18.10 in the Asian session. The asset is hovering near the aforementioned support but is likely to face selling pressure as the US Dollar Index (DXY) has witnessed exhaustion in its upside journey.

The USD Index is struggling to expand gains further as investors are ignoring volatility ahead of US inflation data. Topsy-turvy moves are expected from the USD Index as the US inflation is expected to display some surprises.

Investors are divided about US inflation figures as one school of thought is favoring further softening of inflation as higher rates might have dampened retail demand, While, others are expecting a surprise rebound as labor market conditions are extremely solid.