- The dollar gains momentum as concerns continue in global stock markets.
- Confirmation of USD / MXN at current levels will suggest further raises.
The USD / MXN is extending the weekly bullish journey in a context of fall in the stock markets that boosts the dollar. The price reached 20.19, the highest level since June 23. In the preview of the American session, it remains in the zone of the maximums.
In line with international markets, the indicators of the Mexican stock market had the worst day in six months on Monday, falling more than 2%. The decline in the Mexican peso was not the most pronounced among emerging countries, although those from Latin America are in the group of the most affected. The USD / BRL rises in a week more than 2% the USD / CLP more than 1%. The Peruvian sun is the one that devalues the most on Tuesday.
Should the negative climate persist in global markets, the upward pressure of the dollar in Mexico and the region is expected to continue. The only thing domestic factors could do is to calm or accelerate the movement, but they do not seem enough to reverse the trend.
Testing out of range levels
Technically, USD / MXN is trading above the upper limit of a multi-week range. A confirmation at current levels would pave the way for more gains. The next resistance is seen at 20.30 and then 20.55.
In case of returning below 20.05, the consolidation range between 19.75 and 20.10 would remain intact.