- US stocks rise sharply, Dow Jones at all-time highs above 30,000.
- The Mexican peso is the best performing among emerging market currencies.
The USD/MXN falls on Tuesday after a short-lived rebound on Monday. He’s about to retest the 20.00 zone. It bottomed at 19.97 on Monday, the lowest level since March before rebounding to 20.20. You’re still under pressure from your appetite for risk.
The Dow Jones just passed 30,000 for the first time; has risen by 1.60% driven by several factors: developments around the COVID-19 vaccine, the beginning of the official transition in the US from the Trump administration to Biden, and US economic data.
In Mexico, bond yields fell to the lowest level since March in recent weeks, and inflation data released Tuesday showed a slowdown during the first half of November. All positive news that contributes to boost the Mexican peso.
From a technical perspective, the USD / MXN remains bearish and is testing the 20.00 psychological zone. A break to the downside should lead to further losses with a target of 19.75 and then 19.55.
The USD / MXN bearish bias will likely remain as long as it remains below the 21.45 / 55 area (downtrend line and horizontal resistance). Immediate resistance is seen at 20.20, followed by 20.44 and 20.68.