- USD / MXN remains below 20.00, although the momentum of the Mexican peso eased.
- Dollar with mixed results on Wednesday before the Fed.
The USD / MXN is trading without significant changes on Wednesday, validating the strong setback on Tuesday, when it went from 20.25 to close below 20.00. The pair is trading at 19.90, after having approached 19.80.
Strong setback, MXN outlook improves
The recent decline brought USD / MXN below the 20-day moving average and also below the important 20.00 zone. Now the next support is seen at 19.70, which if broken would point to further losses. A return above 20.00 would remove some of the pressure in favor of the Mexican peso, while a daily close above 20.25 would favor a bullish extension.
Several fronts ahead
In the US there are several focal points. Retail sales data for November showed figures below expectations. Now comes the IHS de Markit. The main event, which may have an impact on the markets, will be the decision of the Federal Reserve. At the same time, there may be news due to the discussions of more fiscal stimulus in the US.
In Mexico, the Chamber of Deputies postponed until February next year the vote for a project that involves changes in the Bank of Mexico legislation. The law does not have the best view of investors and time could be used to broaden the discussion and make changes.
Emerging currencies in general do not show significant variations so far this Wednesday, the same happens with the price of stocks on Wall Street. The dollar, despite this, is falling against the main European currencies.
Levels to consider
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