- Mexican peso gains momentum on Friday despite rising Treasury bond yields.
- US employment data above expectations.
- USD/MXN heading for the lowest weekly close since March 2020.
USD/MXN has erased gains and is trading around 19.50, testing that important support zone. The pair had risen to 19.58 after the US jobs report but then reversed direction.
The Mexican peso thus remains firm against the dollar and returns to target the aforementioned support at 19.50. A confirmation below would expose April’s intraday low at 19.40 and strong support at 19.30.
In case the USD/MXN stays above 19.50, then it could continue trading in the range between 19.50 and 19.70. A clear close above 19.70 should strengthen the dollar and enable further rally. The next resistance is at 19.90.
The dollar Friday presents mixed results. After the US employment data, it appreciated due to an advance in Treasury bond yields, especially against the G10 currencies, although after the start of the American session it lost strength.
Technical levels
Source: Fx Street
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