- Mexican peso rises for the fifth day in a row against the dollar.
- Better tone in financial markets drives decline in USD/MXN.
- The dollar accelerates the downward correction, the DXY has the worst day in the week.
USD/MXN is trading at 19.93, the lowest level since May 20. The Mexican peso is strengthened by the general rise in equity markets and a correction in the dollar.
On Wall Street, the Dow Jones rises 1.05% and the Nasdaq 2.25%. In Europe, the main markets are also advancing. The expectation of fewer restrictions in China and the economic data from Europe and the US help the good weather.
The US retail sales report for April was recently released, showing higher-than-expected figures. Then the industrial production report was also better than expected, registering an advance of 1.1%, higher than the 0.5% expected in April. The data did not help the dollar.
The Mexican peso It is not one of the highest risers on Tuesday, but it is among the best of the last week. The USD/MXN accumulates a drop of 2.12% in one week, while the USD/BRL falls 3.02% and the USD/RUB 8.24%.
Technically the break of 20.00 reinforced the bearish tone. If it continues like this, the USD/MXN could go looking for the next support at 19.85. Below is already the April low at 19.72. To the upside, now 20.00 is the first resistance followed by 20.18 and then the 20.25 zone, where horizontal resistance levels and the 20-day moving average converge.
Technical levels
Source: Fx Street
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