- Emerging currencies favored as market sentiment improves.
- USD/MXN erases weekly gains, returns to 100-week moving average.
- 20.85 support is being tested; 21.00 limits uploads.
The Mexican peso is rising on Friday against the dollar, and hit a one-week high, buoyed by a better mood in global stock markets. Certain expectations aroused by statements by Vladimir Putin, the president of Russia, led the USD/MXN to 20.84, the lowest level in a week.
ANDhe Mexican peso still cannot exceed the 20.85 zone, which if it happens, would leave it positioned for a trip to 20.75. If the next support continues, it will soon appear around 20.70, which, in addition to being a horizontal level, is where the 20-day moving average is passing. To the upside, a firm and sustained return above 21.00 could restore some momentum to the dollar.
The weekly chart points to a flat close, which would be positive for the Mexican peso, considering that USD/MXN reached the 21.50 zone, before embarking on a large reversal. The pair is trading at the 100-week moving average, and if it ends below it, it would point to more weakness.
Wall Street futures point to a positive open on Friday, with gains of more than 1%. In turn, oil is retreating. Treasury bond yields rise putting some cap on dollar weakness.
Technical levels
Source: Fx Street
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