- US data released on Thursday comes out better than expected.
- The dollar recovers momentum after the opening of Wall Street.
- USD/MXN rebounds after marking nine-day lows.
USD/MXN is trading around 19.95, having erased daily losses after falling as low as 19.84, the lowest level in nine days. The rebound occurred before a strengthening of the dollar throughout the market.
The Mexican peso lost momentum on Thursday after testing the 19.90 level. Should it continue below 20.17, where a horizontal level and the 20 and 100 day moving measures converge, a test of 19.80 support can be expected. A return of the USD/MXN clearly above 20.20 would leave the dollar in a position to extend the upward run. The next strong resistance is located at 20.45.
Financial markets are waiting for what emerges from Jackson Hole. He will speak there on Friday Jerome Powell, the chairman of the Federal Reserve. His words can have a great impact on the market.
On Thursday, US data was released that was better than expected. Second quarter GDP and jobless claims were better than expected.
In Mexico, on Wednesday it became known that inflation continued to advance and marked a new maximum in two decades in the first fortnight of August. On Thursday the activity report for June showed a contraction of 0.30% in June.
The recently published minutes of the last meeting of the Bank of Mexico indicated that the central bank will evaluate in the next meetings the magnitude of the rises in the rates according to the circumstances.
Technical levels
Source: Fx Street
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