- The Mexican peso maintains a trend in favor of the dollar, but loses strength in the short term.
- USD / MXN remains close to 20.00 and with the bearish bias dominating.
USD / MXN is rising modestly on Wednesday and operates around 20.06, after having fallen hours ago to 19.95. Once again, the Mexican peso was quickly rejected below 20.00, but for now, the rebound has been limited and the dominant trend continues to favor it.
Emerging market currencies, including the Mexican peso, continue with a favorable tone supported by the rise in stock markets throughout the world. The start of the presidential transition in the US together with the advances of the coronavirus vaccine have unleashed a rally in stocks, which had its impact weakening the dollar.
In addition, the latest US economic reports were added, which have shown, several of them, better than expected figures. On Wednesday it was not exactly the case, as there was a rise in requests for unemployment benefits, although there were others that were encouraging, such as requests for durable goods. In the afternoon the minutes of the last meeting of the Federal Reserve will be published.
In Mexico, the next key piece of information will be the report Bank of Mexico inflation. The latest data was encouraging with a slowdown in the first half of November, which remains to be confirmed.
From a technical point of view, the USD / MXN remains bearish and is testing 20.00. A consolidation below would enable further lows with possible supports at 17.75 / 80 and 17.55. In the opposite direction, at 20.20 is the first relevant short-term resistance, followed by 20.40. Just the break at 21.50 could put the bearish outlook at risk.
Technical levels
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