- Mexican peso advances against the dollar, remains in recent range.
- USD / MXN continues to press with the support at 20.20 / 25.
The The Mexican peso and several of the emerging market currencies continue with a bullish tone against the dollar, mainly supported by the good climate in the stock markets. Wall Street set records and this continues to prop up the appetite for risk, which ends up benefiting the Mexican peso. USD / MXN remains in the recent range, near weekly lows and 20.20.
The major Wall Street indices again set new record highs at the start of the week. Now the futures point to an open with a slight drop. This may be taking something away from the Mexican peso for now, but for now, movements are being limited.
At the same time, Treasury yields They seem to be resuming the downward correction after the pause that followed the rise after the US employment report in March, which showed figures above expectations. Monday’s data on the service sector was also positive.
In Mexico The electoral campaign begins for intermediate elections to be held in June, where in addition to governorships, 500 federal deputies will be elected. With regard to economic data, the most relevant this week is inflation to be known on Thursday. A day before, the minutes of the last meeting of the Federal Reserve.
Pressing about 20.25
The USD / MXN continues with a bearish bias and operating at the lowest levels since the end of February. It is testing the support at 20.20 / 25, which is where the 100-day moving average is also passing. The break of this level would enable a greater retracement, which would hopefully put 20.00 to the test.
In case of not being able to with 20.25, a rebound could be expected, which is seen as an upward correction. Just above 20.55 / 60 (horizontal resistance and day-long moving average), more strength could be expected ahead for the dollar. The next resistance is at 20.80 and then 21.00.