- Dollar is recovering in general and especially against emerging currencies.
- USD / MXN maintains a downward trend, although it recovers 19.70.
USD / MXN is rising on Thursday after having the lowest daily close since March 4. The price returned above the relevant technical level of 19.70, limiting the strength of the Mexican peso. The advance is given before an appreciation of the dollar on all fronts. It is trading near the highs at 19.85, after bottoming out yesterday at 19.59.
The recovery of the dollar comes after the fall on Wednesday although it has lost moment in the last hour against the G10 currencies. The greenback is advancing despite the fact that stocks remain in the area of recent highs, but supported by the rise in Treasury bond yields.
Events in the US Congress had no impact on the value of the dollar. Now the expectation is focusing on what the next fiscal stimulus will look like and on Biden’s economic plan, who will assume the presidency on January 20, with Congress under the control of Democrats.
US economic data on Wednesday was below expectation, especially for ADP employment. On Thursday, claims for unemployment benefits showed an improvement. On Friday it will be the turn of the official December employment report with non-farm payrolls and the unemployment rate.
What happens to the dollar is expected to continue to dominate the USD / MXN, in combination with Wall Street. From a technical point of view, the trend of the crossover continues to favor the Mexican peso.
De return and consolidate above 19.70, the USD / MXN will once again have a relevant support. Below, the path to 19.45 / 50 will remain enabled. To the upside, immediate strong resistances are seen at 20.20, 20.80 and around 20.90 where an eight-month downtrend line is passing.
Technical levels
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