- Emerging market currencies under pressure due to negative market climate.
- Mexican peso cuts losses against the dollar, the same USD / MXN rises 4% in the week.
The USD / MXN is rising on Friday in a day of sharp decline in stock markets throughout the world. The cross jumped to 22.15 at one point in the Asian session, the highest level in a year. It then took a pullback and is trading at 21.70, still positive but far from the previous peak.
The weekly rise in the USD / MXN is being the most significant since September 2020. To domestic factors, the change in the nomination of the next head of the Bank of Mexico, Added to it was the negative climate in financial markets.
The Friday fears spread over the impact of a new variant of COVID, generating a sharp fall in the stock markets and a rise in the safest assets, such as the yields of Treasury bonds.
The market is still affected by high volatility and runs at times that seem exaggerated. However, the USD / MXN trend continues to rise and is on its way to the highest weekly close in more than a year.
Should the negative tone persist in equity markets, pressures on equity markets will tend to persist and even intensify. Among the positive factors is the decline in Treasury yields, which in turn partly limits the strength of the dollar. In fact, the greenback loses ground against the JPY, EUR and GBP on Friday.
Technical levels
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