- The Mexican peso corrects lower against the dollar after Friday’s rally.
- The USD / MXN rises but continues with downward pressure.
The USD / MXN rises on Monday after having had the lowest weekly close since March 2020. The price approached 19.85, recovering from 19.75. This last level is the support to watch in the short term.
The cross bias continues with a bearish bias, but the Mexican peso has to break the support at 19.75 / 85, to extend the moment. In case of holding above, a bullish rebound would be expected. Resistance is at 19.90 and then a more important one at 20.00 / 05.
Week of minutes and Mexican inflation data
On Monday the activity in the financial markets could continue to be limited considering that it is a holiday in the US This will reduce the volume of operations, especially in the second half of the day. On Tuesday normality will return.
Ahead of the week, the publication on Wednesday of the minutes from the last Federal Reserve meeting. These can continue to shape expectations about the future of monetary policy and therefore have a significant impact on the dollar and the Treasury bond market.
On Mexico, the key day in terms of data will be Thursday. That day the June inflation, which is expected to show a slight slowdown in its annual rate, although still close to 6%. That same day, the minutes of the last Banxico meeting will be published, when the benchmark interest rate was unexpectedly raised by 25 basis points.
Technical levels
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