- Mexican peso falls sharply on all fronts after the start of the American session.
- USD / MXN returns to bullish bias after correction on Wednesday.
The USD / MXN experienced an upward acceleration in the last hour and climbed from 19.95 to 20.12, reaching the highest level since April 14. Most of the increase occurred in a matter of minutes, before a sharp decline in the Mexican peso.
The Mexican currency is among the worst performing in the market, without finding a particular factor for the moment. The one that loses the most ground is the Chilean peso (USD / CLP rises 0.79%). Emerging companies mostly lose ground against the dollar.
The rise in Treasury bond yields is especially affecting the aforementioned group of currencies, which are failing to benefit from the rise in the stock markets. The 10-year rate on the US bond climbed to 1,678%, the highest in two weeks.
Return around 20.00
The rise in USD / MXN above 20.00 and above the 20-day moving average points to a strengthening of the dollar. The next strong resistance is at 20.25 / 30. The bullish tone will remain strong as it remains above 20.00. A return below would weaken this bias, increasing the possibility of a return to the previous range between 19.95 and 19.80.
This week’s advance, for now, is ending the positive streak of the Mexican peso against the dollar, which has been in force since the beginning of March.
Technical levels
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