- The 20.00 zone in USD / MXN offers support before the first test.
- Mexico: Inflation rises more than expected in January, doubts by Banxico.
USD / MXN is trading in positive territory on Tuesday around 10.20 after falling to 20.00, reaching the lowest level in almost two weeks. The rebound also occurred due to a slight improvement in the dollar throughout the market.
The dollar it is falling against major currencies and showing mixed results against emerging markets. In this group, those from Latin America appear as the weakest.
Stock markets are falling modestly on Tuesday, dampening demand for risky assets, but the decline is still moderate and the levels of the major Wall Street indices still reflect optimism about the future.
Mexico: AMLO surpasses COVID and inflation rises more than expected
The Mexican president, Andrés Manuel López Obrador reappeared after being infected with coronavirus. The highest authority returned to give the usual press conference in the morning, where he stated that he will no longer wear the mask.
Regarding economic data, it was known that the inflation in January rose more than expected. The consumer price index rose 0.86% in January and the annual rate went from 3.2% to 3.5%, due to a significant rise in energy prices. Although the CPI remains within the range of the Bank of Mexico, the data sows more doubts about whether the central bank will cut benchmark interest rates on Thursday.
From a technical point of view, USD / MXN is moving without a clear direction. As long as it remains above 19.95 / 20.00 a significant bullish rebound can be expected. A confirmation below 19.95 would place the price at levels below the 20 and 55-day moving average, in addition to losing psychological support, which would suggest greater strength for the Mexican peso.
Technical levels
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