- Mexican peso among the best performing currencies on Wednesday.
- Dollar remains firm supported by Treasury bond yields and market climate.
- USD/MXN finds support at 19.90.
USD/MXN fell on Wednesday to 19.90 reaching the lowest level in a week. It then bounced back and is trading around 19.95, still with a bearish bias. The Mexican peso remains firm despite the decline in equity markets.
Technically, the first support for the USD/MXN appears at 19.90, and below it appears the August low at the 19.80 zone. On the upside, there is significant resistance at 20.15. Above will then follow the 20.25 area. A consolidation above 20.30 would favor more rises.
Mexico: inflation does not let up
Data published on Thursday showed that inflation did not ease in Mexico during the first fortnight of August. The index registered an advance of 0.42%, and showed an annual rate of 8.62%, the highest level since December 2000.
The data puts pressure on Banxico to continue raising interest rates. This may be supportive for the Mexican peso, but it implies a growing economic problem.
In the US, the durable goods orders report showed mixed figures. The dollar remains supported by Treasury bond yields, which hit their highest in weeks. In addition, the climate of caution before the possibilities of a global recession, favors the dollar. Despite the above, the Mexican peso is firm, and is among the best performing currencies these days.
On Thursday the minutes of the last meeting of the Bank of Mexico and the Jackson Hole symposium also begins. Jerome Powell speaks on Friday and can have a wide impact on the markets.
|Last Price Today||19.9611|
|Today’s Daily Change||-0.0158|
|Today’s Daily Change %||-0.08|
|Today’s Daily Opening||19.9769|
|20 Daily SMA||20.1943|
|50 Daily SMA||20.3108|
|100 Daily SMA||20.1627|
|200 Daily SMA||20.4058|
|Previous Daily High||20.1968|
|Previous Daily Minimum||19.9514|
|Previous Maximum Weekly||20.2676|
|Previous Weekly Minimum||19.8019|
|Monthly Prior Maximum||21.0539|
|Previous Monthly Minimum||20.0921|
|Daily Fibonacci 38.2%||20.0452|
|Daily Fibonacci 61.8%||20.1031|
|Daily Pivot Point S1||19.8866|
|Daily Pivot Point S2||19.7964|
|Daily Pivot Point S3||19.6413|
|Daily Pivot Point R1||20,132|
|Daily Pivot Point R2||20.2871|
|Daily Pivot Point R3||20.3774|
Source: Fx Street
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