- Mexican peso rises supported by higher demand for emerging currencies.
- The dollar with mixed results, registers strong gains against rivals of the G10.
USD / MXN is falling on Tuesday for the second day in a row and continues to retreat after Friday’s jump. The price is just above 20.20, after having fallen to 20.15. On Monday the crossing had closed at 20.36.
The dollar is having a particular day, since it rises significantly against the main currencies, those of the G10, even against those linked to commodities, while losing ground against those of emerging markets. In the latter group, the Mexican peso is doing well.
The factor behind the mixed results is the equity market. The major Wall Street indices are rising. The Dow Jones climbs 1.20% and the Nasdaq 1.15% after the start of the session. Oil is also advancing, with WTI at a one-year high near $ 55.00.
From a technical point of view, the USD / MXN has avoided further strength with the recent pullbacks. These would take more significance to break below 20.05. Below the next strong support is seen at 19.95. In the opposite direction, at 20.30 there is intermediate resistance, before 20.40. Then it will follow 20.60 and 20.80. In a broader perspective, a daily close above 20.80, would point to more rises.
Technical levels
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