- Mexican peso favored by better climate in financial markets.
- USD/MXN maintains no negative tone, tries to break support at 19.30.
The USD/MXN is trading around 19.30 after hitting a one-month low of 19.25. The pair is under pressure again, and falls for the third day in a row. The dollar it is among the weaker currencies on Wednesday.
The greenback is giving up most of Tuesday’s gains. This occurs in the face of an advance in equity markets coupled with a rise in Treasury bonds. Several sections of the US bond yield curve are at weekly lows, which works against the dollar.
The context, except for the drop in oil prices, looks positive for emerging currencies that are appreciating against the dollar. If the positive climate continues, the trend is expected to continue. Later on Wednesday the US ISM Manufacturing will be released and then the minutes of the last Federal Reserve meeting.
The USD/MXN chart points in favor of the Mexican peso. If confirmed below 19.30, the next target is 19.15. Below the next relevant support is at 19.00/05. A return above 19.30 would ease the bearish pressure, and keep USD/MXN in the 19.30/19.55 range.
The confirmed break above 19.55, where the 20 and 55 day moving averages converge, would give support to the dollar to extend the bullish run.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
