- US dollar falls across the board as stocks surge.
- The Mexican peso rises on the back of risk appetite.
- USD/MXN remains higher for the week, significantly off the highs.
The USD/MXN is falling on Friday after posting the biggest daily gains in a month on Thursday. The dollar jumped after the Russian invasion and reached a high of 20.78, the highest level in almost a month. Currently, it is back below 20.50.
Thursday’s panic in financial markets took USD/MXN to its highest level in almost a month. As stocks started to rally, the pair trimmed gains and closed the day below 20.60. On Friday, the recovery of the Mexican peso continues, supported by the better tone in the markets.
The USD/MXN bottomed at 20.37 and is hovering around 20.45. It is far from the weekly high but still positive, about to post the first gain in four weeks. The short-term outlook looks skewed to the upside, especially if it breaks back above 20.50. A drop below 20.30 would expose 20.25 and the February low at 20.15.
Wall Street indices are mixed with European stocks up 3% on average. US economic data beat expectations, helping risk sentiment and not the dollar. In Mexico, data showed the economy stalled in the fourth quarter after a 0.4% contraction in the third.
USD/MXN daily chart
Additional technical levels
Source: Fx Street
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