- Mexican peso rises for the third consecutive day against the dollar.
- Positive tone in financial markets helps emerging currencies.
- USD / MXN goes up to 20.50 and tests the 100-day average.
USD / MXN extended the decline and reached 20.49, the lowest level since mid-Novemberand. The Mexican peso continues with a favorable tone, supported by the good mood in the financial markets, which is reflected in a rise in the stock markets.
Wall Street futures point to a positive open, while in Europe the main stock markets are in the green. This good tone is favorable for emerging market currencies. On Wednesday, the dollar had a pullback limited in part by rising Treasury yields. Thursday this is not being the case.
The markets continue with volume and limited operations for the end of the year. This has not slowed the decline in the USD / MXN, which has fallen steadily since the middle of the month. It is testing the 20.50 support and the 100-day average. A confirmation below would leave the cross with more weakness. The next strong support is seen at 20.30.
Get up, now 20.58 is the first resistance followed by a stronger one at 20.70. A return on the latter would alleviate downward pressures, while already exceeding 20.90, the downward bias would be in jeopardy.
Technical levels
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