- Mexican peso among the best among emerging currencies on Friday.
- The dollar falls after the August US employment report.
USD / MXN is falling for the sixth day in a row and hit two-week lows at 19.85. It is trading at 19.88, after the Wall Street open and after the US employment report.
The US data triggered a fall in the dollar that took the USD / MXN to new weekly lows, although compared to other emerging markets the greenback is rising.
The USD / MXN bias remains clearly bearish with strong support at 19.80 ahead. Bearish pressure is expected to remain intact while below 20.10.
Employment data weakens the dollar
The report on the August labor market showed positive figures although the main data was below expectations. Nonfarm payrolls increased 235,000 in August, below the 750,000 market consensus and 1.05 million in July. It is the lowest rate in seven months.
The data sent the dollar falling on all fronts, although Treasury bond yields rose with the 10-year rate advancing to 1.33%. This may have limited the dollar’s fall.
Mexico: drop in consumer confidence
The Thursday there was a drop in the consumer confidence indicator for August. It was the second consecutive monthly deterioration and the largest drop since April 2020, according to the report from the National Institute of Statistics and Geography (Inegi). The main index stood at 42.7, 1.2 points less than in July, and one level below the pre-pandemic level.
Without data for Friday, the next relevant data will be next Thursday with the inflation figures for August. A slight moderation in annual inflation is expected from 5.8% to 5.7%.
Technical levels
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