- Dollar weakness persists in the market, particularly against emerging currencies.
- Mexico: The rebound of the economy continues in the second quarter.
- USD / MXN heading for the eighth consecutive daily decline.
The USD / MXN is falling again and on Friday it tests the support at 19.80. The good tone of emerging currencies continues to be a key support for the Mexican peso, while the dollar remains on the defensive.
The cross fell to 19.80, the lowest level since July 6 and remains close to that area, with a clearly bearish bias. A confirmation below would expose the next support at 19.70 / 75. Technical issues contributed to the weakness of the crossing.
Another factor that keeps the USD / MXN weak is the dollar, which remains on the defensive throughout the market. On Friday in particular against emerging market currencies. The Turkish lira, the Russian ruble and then the Mexican peso with which you go up the most.
US personal income and spending data for June did not help the dollar overall. Although it is worth noting that the greenback went into positive territory for the day against the G10 currencies.
Mexico: Record rebound in GDP
The growth data of the GDP for the second quarter showed an advance of the economy of 1.5%, slightly below the 1.7% expected by the market consensus. In this way, a record year-on-year jump of 19.7% was recorded. This high number reflects the comparison with the same quarter of the previous year, when restrictions on activities were in force. In this way, four consecutive quarters accumulate with GDP expansion.
Technical levels
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