- The Mexican peso continues to decline against the dollar in the face of a cautious climate in the markets.
- USD/MXN continues to rebound from lows in months.
- US retail sales mixed results, focus shifts to Fed minutes to be released in hours.
USD/MXN is rising for the second day in a row and is back above 20.00. The upward momentum is given by a general rise in the dollar in the market.
The cautious climate in the stock markets along with a rise in Treasury bond yields are proving to be a supportive factor for the USD/MXN. In addition, the weakness of the prices of raw materials can be added to the above.
Regarding data, it was learned that US retail sales remained unchanged in July against the expectation of a rise of 0.1%. The details of the report were encouraging as sales of the control group and without taking into account vehicles climbed above expectations.
In the afternoon of the American session, the minutes of the last meeting of the Federal Reserve when he raised the interest rate by 75 basis points.
USD/MXN hits the minutes in the midst of an acceleration. The pair reached as high as 20.08, the highest in a week. Less than a day ago it was trading below 19.90. The bullish tone could gain support if it continues above 20.00. In case of rising, the next resistance is seen in 20.20. A return under 19.85 would return the moment to the Mexican weight.
Technical levels
Source: Fx Street
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