- Mexican peso avoids run above 20.00.
- Stock market stability and dollar weakness support the USD / MXN.
USD / MXN is rising on Thursday, and It operates in the zone of the highs of the day at 19.95, but without changing the panorama of the last days, remaining close to 20.00.
The rises occur in a context of relative strength of the dollar, but moderate. On Wednesday the greenback had a significant fall as a result of the statements of Powell, the president of the Federal Reserve, signaling a continuity in the current policy of the central bank.
Thursday’s US data did not show to affect the dollar. There was a drop in unemployment benefit requests to the minimum since March 2020, a setback from the Philly Fed and an advance in industrial production less than expected.
El USD / XMN continues to move sideways, with no clear direction. To the upside, it is still unable to assert itself above 20.00 / 05, if it succeeds, it could give the dollar a boost, facing next resistance at 10.20 / 15. Just above the latter it would be ready for a bullish extension towards 20.30 and with a firmer bias.
To the downside, support for the current range is at 19.80. A close below the latter would expose the next support at 19.70, which protects the strong 19.50 zone.
As long as it remains around current levels, volatility is expected to remain contained. This level, in addition to having the 20-day moving average, has been equilibrium and the average in five of the last seven months.