- Mexican peso and emerging currencies fall against the dollar due to negative market climate.
- USD / MXN jumps towards 20.70, but then recedes relieving upward pressure.
The USD / MXN is rising at the start of the week, although in the last hours it cut losses significantly. The price jumped to 20.65, reaching its highest level in a month before falling back to 20.12. It is trading in the 20.20 zone, positive for the day but far from the highs.
The rises were driven by a sharp drop in stocks throughout the world. The new restrictions in Europe, together with the spread of a new strain of the coronavirus in the United Kingdom, triggered a wave of risk aversion that generated sharp falls in the stock markets and sent the dollar soaring in the market.
In the last hours, the main Wall Street indices cut losses, which favored the decline in the USD / MXN. In turn, the dollar also cut gains. The DXY reached hours ago to levels above 91.00, before retreating slightly. Last week the index had fallen to its lowest in two years.
The Next movements of the Mexican peso and emerging currencies will be linked to what happens to stocks on Wall Street. If the downward pressures in equity markets return, further increases in USD / MNX would be expected.
Above 20.65 the next resistance in USD / MXN is at 20.85 followed by 21.00. In the opposite direction, 19.95 is again the support to take into account, and below the 19.70 area.
Technical levels
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