- The dollar generally rises on rising Treasury yields.
- Mexican peso receives better mood support in exchanges throughout the world.
- USD / MXN with limited bounce, without returning above 20.70.
The USD / MXN is trading in the 20.50 zone, after having risen to 20.63 hours ago, close to Monday’s peak. The rises continue to be followed by setbacks, showing some uncertainty ahead.
USD strengthens
The dollar is rising on almost all fronts for these sessions supported by the rise in the yields of Treasury bonds. The 2-year rate at 0.8%, the highest since 2020, and the 10-year rate approaching 1.70%, reflect the rapid upward path, given the expectations of an adjustment by the Federal Reserve earlier than previously expected.
The USD / MXN rises but modestly. The strength of the dollar finds a limit to optimism in the equity markets, which favors the demand for riskier assets. Also during these hours the strong dollar predominates.
Big challenges for the greenback will be Wednesday’s employment data from ADP and Federal Reserve minutes, and Friday’s employment report with nonfarm payrolls. In Mexico, Friday will also be a key day since the December inflation data will be released, which is expected to show an increase in the annual rate from 7.37% to 7.51%.
Technical levels
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