- Mexican peso rises strongly against the dollar for the second day in a row.
- USD / MXN tests levels below 19.80.
The USD / MXN recently fell to 19,754, the lowest intraday level since January 22. The price is currently positioning below 19.80, in a context of optimism in the markets, a weak dollar and a fall in the yields of Treasury bonds.
Banxico and US data
The Bank of Mexico on Thursday, as expected, the benchmark interest rate remained unchanged at 4%. In the statement, Banxico recognized upward risks in inflation, which means that no changes in rates should be expected in the short term, possibly until the end of the year, analysts warn.
The Mexican peso appreciated after the decision on Thursday and extended the bullish run on Friday. The latest data from the US contributed to further weakness for the dollar.
It was known on Friday of a stagnation in April retail sales in the US against an expected rise. This put more pressure on the greenback by pushing back Treasury yields. The 10-year rate is 1.62%, far from the 1.70% that it was able to achieve days ago.
USD / MXN tries below 19.80
Should the USD / MXN consolidate below 19.80, the technical outlook would favor lower with a near target around 19.70 and below the spotlight it would move to the strong barrier of 19.50 / 55.
A firm comeback above 19.80 would ease the pressure to the downside. Above the next resistance is at 20.00, which if overcome, would expose the 20.20 level.
Technical levels
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