- Mexican peso among the best performers on Friday, after declines on Thursday.
- USD / MXN in slightly positive territory for the week but far from the highs.
The USD / MXN experiences hours of high volatility. On Friday it reached 20.21, the highest level in three weeks, and then plunged to 19.94, returning to the previous range. The drop came on the back of a widespread dollar crash in the market following US employment data.
The Increase in US jobs in May, lower than expected triggered a fall in the dollar, and in Treasury yields. It also made the bags rise. In this way, there were movements in the financial markets contrary to those of Thursday, when the dollar had risen strongly, in part due to employment indicators, which sowed expectations for a positive surprise on Friday, which finally did not occur.
The USD / MXN remains with limited routes, with a slight bullish bias. But once again it is not affirmed above 20.00 / 05, which means that the pair continues in consolidation mode and with lateral movements. Short-term short-term support moves to 19.85.
Election weekend in the region
On Sunday there will be elections in Mexico to renew the Chamber of Deputies. The ruling party is expected to achieve a broad victory. A large majority of the Andrés Manuel López Obrador party could be a negative result for the markets.
There will also be elections in Peru, where Pedro Castillo, a leftist candidate could be the winner. This would be another result that would continue to put the region on less market-friendly paths. In general, Latin America is mired in problems, which would limit growth in the coming semesters, with growing risks of a worsening in asset prices.
Technical levels
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