USD / MXN falls to one-week lows below 20.50

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  • US Employment Data Beats Expectations and Boosts Equity Markets.
  • The Mexican peso and other emerging markets are favored by optimism on Friday.
  • USD / MXN falls to the 20.40 zone, prolonging the retracement from 20.97.

The USD / MXN resumed bearish runs and broke below 20.50, falling to 20.40, the lowest in a week. The key driver is being a greater appetite for emerging market currencies due to the context left by the US employment report.

Figures for the US labor market beat expectations by showing an increase in payroll of 531,000, higher than the 425,000 expected. There were also encouraging details. This generated optimism in the exchanges.

After a few minutes and after the start of the American session, the yields of the Treasury bonds fell, which gave another positive detail for the Mexican peso and other emerging markets.

For now the USD / MXN is not managing to break the support between 20.40 / 45, which is a strong horizontal level, where the 20-day moving average is also passing. A confirmation below would leave the Mexican peso strengthened. If not, here, a consolidation between 20.40 and 20.65 would be expected. Above this last level the next resistance is at 20.85 / 90.

Technical levels

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