- Mexican peso remains strong against the dollar.
- Mexico: Inflation higher than expected in May, but below 6%.
The USD / MXN is falling for the fourth day in a row. The Mexican peso continues to gain ground after Sunday’s elections and driven by a weak dollar in the market. The price of the cross is at 19.60, the lowest level since December last year.
In case of extending the fall below 19.60, the Mexican peso would reach levels not seen since March 2020 and would leave the way to go towards 19.50 / 55, which is the next support of consideration.
A weekly close below 19.80, from a technical point of view it would be a bearish signal for the USD / MXN, as it would be the first below the 20-week moving average in more than a year.
The current weakness of the USD / MXN has another ally in the fall of the yields of the Treasuries. The 10-year rate fell below 1.50%. Thursday’s US inflation data may be key.
Mexico: inflation low but not so much
On Mexico the focus remains on what Sunday’s elections left behind. The official victory was not enough to get a qualified majority in Congress, which was celebrated by investors.
Today it was known that the consumer price index in Mexico rose 0.20% in May, bringing the annual rate to 5.89%, a level below the 6.08% of the previous month. This implies a reduction but is still well above the central bank’s target.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
