- Mexican peso among the best performers on Friday, driven, among others, by factors.
- USD / MXN aims to test 20.84, last month’s low.
USD / MXN is falling for the fourth day in a row andIt is trading at 20.87, the lowest level in a month. The price points to the September lows that are at 20.84. If it falls below it, the Mexican peso would visit prices not seen since March.
The weakness of the pair is due to several factors. The main one is a weakness of the dollar in the market before certain optimism of the operators. The presidential debate in the US did not leave new things. This time, the presidential campaign does not generate a great impact in Mexico, which indirectly favors the peso.
In addition, technical factors are added. The fall of the USD / MXN below 21.00 confirmed the bearish outlook and accelerated the movement. This could intensify from breaking 20.85.
The latest economic data on activity in Mexico have been encouraging, although on the negative side inflation remained above the central bank’s target.
In the next few hours the weather on Wall Street will be definitive for the USD / MXN. In the US, the Markit PMI report will be published and negotiations for more fiscal stimulus will continue.
Credits: Forex Street
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