- Mexican peso rises for the fourth day in a row against the dollar.
- USD / MXN breaks below the previous low of October and intensifies the bearish tone.
USD / MXN continues to move on a bearish bias and has broken below last week’s lows, reaching to 21.05, the lowest level since September 21. It is trading in the lows with a firm and strong bearish tone, aiming to test 21.00.
From a technical point of view, the bearish bias remains intact. Just a close over 21.35 could ease this pressure. In case of continuing with the retracement, below 21.00, the look will go to the September lows that are located at 20.83.
Market optimism weakens the dollar
The Today the Mexican peso is rising against the dollar at a less significant rate than other emerging currenciess, but it is still among the leaders in performance considering the last five days of operations.
The momentum for the Mexican peso and other emerging market currencies on Monday comes on the side of investor optimism. Stock markets in Europe and Wall Street futures are moving in positive territory.
Renewed expectations about the possibility of an early agreement for more fiscal stimulus in the US, plus economic data from China and advances for a vaccine, are supporting the markets.
The tone of the market in the next few hours may be determined by what the highest authorities of the Federal Reserve and the European Central Bank will say. In turn, the overall performance of the dollar could shape the USD / MXN. The dollar index is having the most significant drop in days and is at the lowest level since last Tuesday at the 93.20 area.
Credits: Forex Street
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