- The dollar was favored by rising Treasury yields.
- USD / MXN advances after approaching key support at 20.50.
USD / MXN climbed from the one-week lows just below 20.60 to 20.92 on Friday, erasing Thursday’s losses. The price is at 20.85, with the bullish tone intact, although with less intensity.
The advance of the dollar throughout the market, driven by a considerable rise in Treasury yields, led to the rebound of the USD / MXN, which advanced after falling three days in a row, retreating from levels above 21.50 to 20.58.
As reference, on Friday the US 10-year rate broke above 1.54% and reached 1.62%, almost equaling the maximum of this year. The focus in the next few hours will continue on what happens with the bonds and will also be on Wall Street, to see the reaction of the market. The futures of the main indices are in negative with modest losses.
The dollar appreciated on Friday mainly against emerging markets. The one that falls the most in this group is the Turkish lira, followed by the Mexican peso (both USD / TRY and USD / MXN are up more than 1%). Then comes the Chilean peso among those that fall the most.
Levels to consider
Get up, the 21.00 zone is the first resistance of consideration in the USD / MXN, followed after 21.21. In a broader perspective, the bullish bias remains but to enable more raises there should be a daily close above 21.50.
In the opposite direction, if the peso manages to break clearly below 20.50, the bullish tone would lose momentum. The next support is at 20.25.
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