- Emerging currencies rise against the dollar, given a climate of optimism in the markets.
- USD / MXN with a bearish bias, to test the lows of the month.
USD / MXN is falling for the third day in a row and is trading at 19.80, after bottoming at 19.72, the lowest level in a week and just above 19.69, the December low.
The fall of the cross occurs in a context of general weakness of the dollar. The rise in stocks is the key factor behind the appreciation of emerging currencies. In addition, the rise in raw materials is added, which gives more push.
Should USD / MXN break down and affirm below 19.70, further declines would be expected, with a possible target in the 19.45 / 50 area. As long as it remains below 21.30, the bearish bias will be dominant.
Banxico: No changes expected
On Thursday afternoon, Banco de México will announce the decision of the Governing Board on monetary policy. No changes in interest rate are expected. It would be the second consecutive pause after the casualty cycle. The reference rate would continue in this way at 4.25%.
The rise in inflation was one of the factors that stopped Banxico in the cut cycle. In the last month, the CPI fell. Added to the above is the appreciation of the Mexican peso. Both factors could reopen the doors to more stimulus from Banxico. Few analysts expect Banxico to announce a cut today.
Technical levels
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