- The Mexican peso remains among the weakest.
- USD / MXN finds support at 20.40.
USD / MXN is rising on Monday after Friday’s correction and is trading above 20.50. The Mexican peso remains among the weakest currencies among the most traded, considering the performance of the last five days.
The cross on Friday had hit a three-and-a-half month high at 20.72, but then undertook a sharp pullback, culminating in the 20.40 support zone, from where USD / MXN is rebounding. The price peaked at 20.58 on Monday, before cutting gains.
A weaker dollar led the cross back towards 20.50. In any case, the underlying trend remains bullish. A dip below 20.40 could enable an extension of the retracement to 20.20 and below the focus will shift to 20.00, the break of which would negate the bullish bias. To the upside above 20.65, a test of the recent highs at 20.70 / 75 would be expected. This zone protects the next resistance at 20.90 and at 21.00.
The increases in the USD / MXN are limited by the rise in oil to which some weakness of the dollar can be added on Monday. In turn, share prices are mixed, but relatively stable.
On EE.UU. the focus of attention is on Congress with the debate on a new infrastructure investment plan and the legal limit on indebtedness. This week will feature important economic data, closing on Friday with non-farm payrolls. This can generate volatility considering the impact on monetary policy expectations by the Federal Reserve.
The key data in Mexico it will be the inflation rate for September to be published on Thursday. The consensus points to a rise in the CPI of 0.60% for the month, with the annual rate rising to 6%.
Technical levels
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