- The dollar falls again against the currencies of Emerging Markets.
- The USD/MXN reaches the lowest level since February 2020 and the rebound.
The USD/MXN it broke below 19.25 and fell to 19.03, reaching the lowest level since February 2020. During the beginning of the American session, the dollar began to recover ground. At the time of writing, the pair is hovering around 19.17, far from the lows, still on its way to the lowest daily close in years.
The zone of 19.00/05 is an important support. A break down would open the doors to more losses. As long as it stays above, a consolidation between 19.00/05 and 19.25/30 looks likely.
The drop came amid a rally in emerging market currencies. USD/BRL falls 1.20%, USD/KRW 1.05% and USD/ZAR 1.05%.
key facts
Third quarter GDP data for the United States will be released on Wednesday. The critical report of the week will be on Friday with the figures from the official US employment report. Non-farm payrolls are expected to increase by 200,000 and the unemployment rate is expected to remain at 3.7%.
In Mexico, the central bank will release its quarterly report on inflation on Wednesday. The CPI for November will be published on December 8. Although headline inflation has been falling, core inflation is at multi-year highs.
“In the last policy meeting on November 10, the bank raised rates 75 bp to 10.0% and said that “in its next meetings, the Board will evaluate the magnitude of the upward adjustments of the reference rate based on prevailing conditions”, suggesting a possible reduction to 50bp at the next meeting on December 15. In fact, there was some dissent in favor of a move less than 50bp and others could follow if inflationary pressures ease”, explained the BBH analyst.
technical levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
