- Mexican peso rises again against the dollar.
- Low yields on Treasury bonds put pressure on the greenback.
The USD/MXN is falling for the second day in a row, supported by a general decline in the dollar in the market. The pair pulled back towards the 20.30 area, breaking important supports along the way.
After the start of the American session, USD/MXN fell to 20.32. It is targeting the 20.30 zone which, if given way, would pave the way to test last week’s low at 20.20. Below at 20.15, wait for the 100 day moving average.
The short-term outlook is turning to favor the Mexican peso. A relevant level for USD/MXN is seen at 20.55, where the 20-day moving average is passing. A return above could restore strength to the dollar.
After Tuesday’s recovery, the dollar was losing momentum. In the last hours it marked minimums throughout the market, due to a decline in the yields of Treasury bonds.
US economic data showed a rise in jobless claims. On Friday, the employment report with non-farm payrolls will be published. In Mexico, a drop in consumer confidence was known from 43.0 to 41.3. Next week will be strong in Mexico with the inflation data on Tuesday and Banxico’s decision on Thursday.
Technical levels
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
