Home Markets USD/MXN falls to six-day lows at 20.10 ahead of Banxico

USD/MXN falls to six-day lows at 20.10 ahead of Banxico

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USD/MXN falls to six-day lows at 20.10 ahead of Banxico
  • USD/MXN falls sharply from weekly highs.
  • The Mexican peso is favored rebound in stocks and raw materials.
  • Banxico is expected to raise 75 basis points on Thursday.

USD/MXN is trading around 20.15, having bottomed Thursday at 20.10, the lowest level in six days. A few hours ago, the pair was trading at 20.57, the highest since early August. In hours, Banxico’s decision.

The volatility remains elevated in global financial markets amid fears about the global state of the economy and the future. On Wednesday, the Bank of England (BoE) shook the markets by announcing temporary purchases of bonds, after the dramatic fall in their value.

What the BoE did ended up favoring a rise in stock markets and a decline in sovereign bond yields. It also led to an upward correction in raw materials. All of this favored emerging market currencies, including the Mexican peso.

On Thursday, the third estimate of GDP growth was published in the US, which did not generate surprise, and the weekly report on requests for unemployment benefits, which showed better-than-expected data, which gave the dollar a momentary air.

In the afternoon, the Bank of Mexico will announce its monetary policy decision, which is expected to be a rise of 75 basis points, to match what the Federal Reserve did last week and mainly due to the fact that inflation in Mexico remains above 8%, very far from the target of the central bank.

Technical levels

USD/MXN

Overview
Today last price 20.1406
Today Daily Change 0.0106
Today Daily Change % 0.05
Today daily open 20.13
trends
Daily SMA20 20.0517
Daily SMA50 20.1434
Daily SMA100 20.1323
Daily SMA200 20.2678
levels
Previous Daily High 20.5794
Previous Daily Low 20.1188
Previous Weekly High 20.2655
Previous Weekly Low 19.8402
Previous Monthly High 20.8261
Previous Monthly Low 19.8019
Daily Fibonacci 38.2% 20.2948
Daily Fibonacci 61.8% 20.4035
Daily Pivot Point S1 19.9728
Daily Pivot Point S2 19.8156
Daily Pivot Point S3 19.5123
Daily Pivot Point R1 20.4333
Daily Pivot Point R2 20.7366
Daily Pivot Point R3 20.8939

Source: Fx Street

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