- The Mexican peso remains firm against the dollar despite falling stock markets.
- USD/MXN remains below the 200-day moving average.
USD/MXN is trading flat on Friday, despite the cautious mood in equities, which is not having much of an impact on emerging market currencies so far. The crossing is on track for the lowest weekly close since October of last year.
The Mexican peso is going for the third consecutive weekly gain against the dollar. The declines in the equity markets have not been able to stop the advance, nor have they led to a correction. On Thursday, the Mexican stock market and the Dow Jones had the worst day in months, despite this, the USD/JMXN only had a rebound in the session to 20.35, to end up closing below 20.30.
The oil price correction did not affect the Mexican peso either. The barrel of WTI falls 5% compared to the levels of a week ago. The economic data from Mexico were absent that week, in the next one they can be key since they include inflation on Thursday and activity on Friday.
The technical picture remains skewed to the downside for USD/MXN and if it continues below 20.30 the initial target is at 20.15, followed by 20.05. The 20.00/05 barrier should stop the declines, at least on the first try. Should it rise above 20.35, bearish pressures could ease. Above, resistances are seen at 20.50 and 20.70.
Technical levels
Source: Fx Street
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