Mexican peso remains firm below 20.00

Get real time updates directly on you device, subscribe now.

  • Mexican peso clings to recent gains and maintains a favorable tone.
  • The US dollar regains some of the ground lost against G10 currencies on Monday.
  • USD / MXN looks weak below 20.00, targeting 19.80.

The USD / MXN is trading flat on a limited run day following Friday’s US employment data and the Wall Street holiday. The cross on Monday had risen to 19.93 before turning lower. It is trading at 19.89, just above the lows for the day.

On Friday, the USD / MXN came to operate at 19.84, the minimum in three weeks, completing a large reversal from prices near 20.50 (August highs). Now the next significant support is the 19.80 area, which if given up would leave the path ready for 19.70. To the upside, a return above 20.10 would take the positive tone out of the Mexican peso.

Week ahead

In the US, the week began with a holiday following Friday’s employment report. The key data will be wholesale inflation on Friday, where the annual rate was expected to rise from 7.8% to 8.2%. Analysts will also be on the lookout for statements from Federal Reserve officials following the employment figures.

On Mexico, the economic calendar shows as an event to highlight the inflation data for August on Thursday. It is estimated that the annual index could have fallen from 5.8% to 5.6%, which would become the lowest since March, although still well above the objective of Banxico (2-4%). The industrial production report for July will be published on Friday.

The next meeting of the Bank of Mexico It will be on September 30th. The expectation for now is that there will be a pause in the upward cycle, considering the drop in inflation, the exchange rate and how the vote was at the last meeting.

Technical levels

.
Source Link

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.