USD / MXN continues to press the 20.30 / 35 support

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  • USD / MXN continues to consolidate in the area of ​​recent lows.
  • The dollar with mixed results, attentive to the yields of Treasury bonds.
  • The market awaits Jerome Powell’s words.

The USD / MXN is trading in neutral territory on Tuesday, near 20.35 and 20.32, where it is the low of November. The short-term bias continues to the downside and if 20.30 were to give way, lower ones would be expected.

The Mexican peso remains firm despite the fact that the dollar it is favored by the rise in the yields of Treasury bonds. Several sections of the curve hit month-highs on Tuesday before a small pullback. The performance of emerging market currencies these days is scattered, without noticing a general direction.

Powell speaks in the Senate

The focus of the market is on the words of Jerome Powell, the president of the Federal Reserve before the Senate Banking Affairs Committee, at the hearing for his nomination for a new term as head of the central bank.

Whatever Powell it can influence monetary policy expectations. The next meeting is January 25-26. December inflation data for the US will be published on Wednesday, which is also expected to have an impact on the expected trajectory of the Fed.

In Mexico a drop in industrial production in November 0.1%, with a modest increase expected. Compared to 12 months ago, it was up 1.6%.

The next meeting of the Bank of Mexico It will be on February 10, the first under the presidency now of Victoria Rodríguez Ceja. A new rise in the benchmark interest rate is expected, but it is not clear if it will be another 50 basis points.

Technical levels

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