- Positive day for most emerging currencies against the dollar.
- Mexican peso remains at the top of the weekly podium.
USD / MXN is trading at 20.48, the lowest level since March 18. If confirmed clearly below 20.50, the Mexican peso will be positioned to extend the advance against the dollar. The dollar correction is the main factor behind the pullback.
From a technical point of view, the USD / MXN is on the way to prolong the weakness of getting a confirmation below 20.50. On the contrary, if we had a rebound from current levels, the signals would point to a possible reintroduction of the bullish bias. If the bearish run is extended, the next strong support is at the lows of two weeks ago at the 20.25 area.
Brazil + Turkey – China
The emerging currencies They are having a positive day against the dollar, as a result of a downward correction of the greenback, especially against the main currencies, against which it has risen significantly in recent days.
On Wednesday, China’s March activity data came out better than expected, giving a positive impact.. This serves to overshadow the negative influence on the emerging sector that the devaluation of the Turkish lira and the latest announcements in Brazil are having. In the South American giant there was a dramatic change of cabinet days ago and added the resignation of the military leadership on Tuesday. The real and the lira are, in the last five days, the worst performing currencies among emerging ones. At the opposite extreme is the Mexican peso.
The optimism about the US stimulus plan., together with the expectation of a great economic performance for that country, are supporting stocks on Wall Street and mainly favoring the Mexican peso. This is even leaving concerns about domestic factors, such as the energy sector reform project, on the back burner.
On Wednesday it became known that according to ADP, the private sector had the strongest month of job creation since September last year. The official employment report will be released on Friday with the non-farm payroll figures and the unemployment rate.
Technical levels
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