- Mexican peso among the strongest of the emerging markets on Tuesday.
- USD / MXN loses momentum to the downside, but remains below 20.00.
USD / MXN is trading slightly higher on Tuesday, still near the September low and support at 19.80. The cross rose to 19.96 in the European session but later trimmed gains. In the last hour, despite the fall on Wall Street, it remained relatively stable and far from the highs around 19.90.
The Mexican peso is performing well in the market, being one of the emerging markets that loses the least ground against the dollar. The lira ture and the Australian dollar are among the most traded, the one that fell the most.
The dollar rises on almost all fronts for the second day in a row. In the return to normal activity on Wall Street after Tuesday’s holiday, Treasury bond yields rise sharply, supporting the dollar and weakening the yen and gold. The 10-year rate reached 1.38%, surpassing the August highs.
Regarding the technical landscape, USD / MXN has lost its strong bearish tone. While the short-term trend still favors downs, an upward correction or consolidation would be expected before the next leg. On the downside, key support remains at 19.80. To the upside, a return above 10.20 would leave the dollar stronger.
Technical levels
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