- Mexican peso among the best performers on Friday.
- The dollar reverses the trend abruptly after the US employment report.
USD / MXN fell to 19.80 following the employment report reaching the lowest level in two days and approaching support at 19.75. In the Asian session it had climbed to 20.05.
The sharp drop came after the release of the US employment report that showed an increase in non-farm payrolls of 850,000, the highest figure in ten months and above expectations. The dollar initially reacted higher, but then changed trend.
After several days with rises, the dollar seems to have arrived with some exhaustion and favored a behavior of “buy with the rumor, sell with the news”. Bond yields had an increase in volatility, but without departing from the level they were before the report.
No clear guideline
The Mexican peso remains firm on Friday. The USD / MXN technical outlook is unclear, but there are still some upside pressures that would fade if a break below 19.75 occurs.
On Thursday, the price reached 20.08, a maximum in a week, but it could not be sustained at that level and began to decline after failing to hold above 19.95 on Friday. A firm return over 20.05 would have bullish implications for the cross.
Technical levels
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