- The dollar with mixed results, gains momentum before rising Treasury bond yields.
- Mexico: Officialism triumphs in elections for governor held over the weekend.
- USD/MXN tests levels below key support.
USD/MXN started the week testing levels below a key support zone of 19.50. The Mexican peso is among the best performing currencies.
keep pointing down
USD/MXN remains under pressure and is trading below 19.50. A close below could enable an extension to the downside with the next strong support around 19.30.
The intraday low was reached at 19.46 and the pair then trimmed losses. If it returns above 19.50, a continuation of the trading in the range between 19.50 and 19.70 could be expected.
The Mexican peso is favored by some better mood in the markets. The result of the elections in six states of Mexico did not play against. The ruling party triumphed in four of them, which were previously in the hands of the opposition. For this week, the key data in Mexico will be retail inflation on Thursday. A slight reduction in the annual rate is expected.
In the US, the economic calendar for Monday is shown free. The relevant data for the week will also be the inflation data to be published on Friday. There will be no speeches from Fed officials as they are in the quiet period ahead of next week’s FOMC meeting.
Technical levels
Source: Fx Street
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