- Mexican peso falls against the strength of the dollar.
- Optimism in global equity markets keep USD / MXN limited.
USD / MXN is rising slightly on Monday, after a sharp decline on Friday. The price today climbed to 20.23 before falling back to the 20.15 area, where it is trading. The price range remains within the limits of the last days.
The The dollar is rising on almost all fronts on Monday, although it has lost momentum prior to the opening of the American session. Against the main currencies it yielded a large part of the gains and against the emerging ones it shows mixed results.
The Mexican peso is not among the strongest on Monday. Thursday will be the meeting of the Bank of Mexico, that the benchmark interest rate is expected to cut 25 basis points to 4%. Regarding data, inflation on Tuesday and industrial production on Thursday stand out.
Technical overview
The USD / MXN continues to move sideways in the short term. The price remains above the 20 and 55 day moving averages, which favors the bullish bias in the short term. This would change from giving a key support sun break at 19.98 / 20.04, where the January floor converges along with the moving averages.
If there is a close below 19.95, the Mexican peso would be positioned favorably, enabling a fall to 19.80 / 85. In the opposite direction, the first strong resistance emerges at 20.40 and then 20.60. A close already above 20.50 would point to more gains in the short term.
Technical levels
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