USD / MXN exceeds 20.00 and reaches highs in two weeks

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  • The dollar shoots up in the market, with no clear event behind.
  • USD / MXN technical outlook favors more hikes.

The USD / MXN is rising for the second day in a row and reached its highest levels in two weeks, rising to 20.07, boosted after breaking above 20.00, and against a background of general strengthening of the dollar.

The greenback accelerated the upward trend in the run-up to the US personal income and spending report. Possibly investors are betting on high inflation data. In any case, the advance of the dollar has accelerated on all fronts. The DXY is at 90.37, at a high in weeks. Metals have accelerated the correction.

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This context is not favorable for the Mexican peso, which in any case is not among those that fall the most against the dollar. Technically, the advancement of USD / MXN is trading above 20.00 and above the 20-day moving average, which can leave the road ready for more climbs. The next strong resistance can be seen at 20.25 / 30.

Banxico minutes

On Thursday the minutes of the last meeting of the Governing Board of Banco de México were released. They reflected expectations of higher inflation, but according to members it would be temporary and would return to the 3% target as of the second quarter of 2022.

Technical levels

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