- Dollar continues to decline against emerging market currencies.
- Mexican peso at highs in almost two months against the dollar.
USD / MXN resumed downward tracks after Wednesday’s pause, recently falling to 08.20, the lowest level since February 16. The price remains near the minimum, with the bearish tone intact, in a context of generalized rise in emerging market currencies.
The good economic outlook continues to underpin demand for riskier assets. Added to this is the general weakness of the dollar, given a decline in Treasury bond yields.
A stumbling block for a greater speed in the appreciation of the Mexican peso can come from the side of the actions that in the prior to the opening of Wall Street are showing small falls. In the event of a strong correction, the dollar could be favored.
In Mexico, the data of March inflation that showed the highest annual rate since December 2018, at 4.67%. The underlying rate climbed to 4.12%, the highest since February 2018. The advance of the consumer price index in March was 0.54%.
From a technical point of view, the USD / MXN maintains the bearish bias and seems to be heading to test the support at 20.00 / 05, which if it yields would enable a bearish extension to the next support at 19.90. Below then appears for now 19.70. A return above 20.30 would ease downward pressures.
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