- Mexican peso remains strong after breaking 20.00.
- Dollar weakness on all fronts boosts demand for emerging currencies.
The USD / MXN broke below 19.85 and extended the decline to 19.77, marking a new low since mid-March. It is trading around 19.80, after rebounding modestly, and remains under pressure in the face of a weak dollar and optimism in equity markets.
The Emerging market currencies are on track to end the week positive against the dollar. The expectation for the start of mass vaccinations, together with the weakness of the dollar have been the key factors. The dollar resumed its bearish trajectories, boosting practically all emerging currencies. Also among the G10 currencies, the dollar has been the weakest.
At the end of the week the negative trend of the dollar continued. Important data from the US, including the official labor market report, will be released shortly.
Levels to consider
From a technical point of view, USD / MXN continues bearish and is asserting below 20.00. The next support can be located around 19.75 and then a stronger zone around 19.55. On the upside, now 19.85 is the first resistance followed by 19.95 / 20.00. Higher, in case the pair recovers 20.20 it would ease the downward pressures.
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