- Mexican peso continues to recover ground against the dollar.
- Correction of the greenback, low yields and equity markets limited the USD / MXN.
USD / MXN is falling for the third day in a row and reached 20.20, the lowest level in a week. Gone seems to have been the time when the price had approached 20.80.
In the last three days, the USD / MXN experienced a large retracement supported by various factorss. On the one hand, the dollar lost strong and undertook a downward correction, including profit taking. On the other hand, Treasury yields turned around and fell. The 10-year rate is at 1.47%, well below the level it had before the Fed meeting. In turn, there is still a positive expectation in the equity markets due to the evolution of the world economy.
Banxico is coming
On Thursday, Banco de México will announce its monetary policy decision. No changes are expected in the reference interest rates (4.00%). The tone of the statement and the words used will be key for analysts, who will seek to see how close the central bank is to possible changes, especially after what the Fed meeting last week left.
“The Mexican peso has weakened after the June FOMC meeting, but we continue to have a constructive outlook regarding the currency and hope that any increase in sentiment in favor of a hawkish will help stabilize and rebound. of the peso, “said TD Securities analysts.
Technical levels
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