- The global climate and the expectation of the Fed continue to support the dollar.
- The Mexican peso fails to recover ground significantly.
- USD/MXN registers the second weekly rise in a row.
USD/MXN is rising for the fifth day in a row on Friday, buoyed by broad-based dollar strength. The greenback continues to benefit from the Federal Reserve meeting, adding to the current vulnerability of equity markets.
Hours ago the USD/MXN reached 20.85, the highest level since December 21 and then corrected lower to 20.75. The bias remains to the upside, and falls to 20.65/70 can be seen as corrections. Below at 20.60 it is passing the 100 day moving average.
The dollar continues to rise without stopping in the market, given a rise in yields on Treasury bonds and also because of what is happening with the equity markets. Although the Nasdaq rises 0.30% on Friday, the rest of the indices are in the red, and the volatility index, the VIX, remains at high levels.
The most relevant data on Friday from the US showed a rise in the personal consumption expenditure price index in line with expectations, without generating major surprises.
Growth figures will be known in Mexico on Monday, while the next meeting of the Governing Board of the Bank of Mexico will be on February 10.
Technical levels
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