- Emerging market currencies gain momentum after Fed meeting.
- USD / MXN falls for the third day, continues to decline from highs in months.
The USD / MXN is falling for the third day in a row and thus continues with the decline that began after approaching 21.00 on Wednesday. The weakness of the dollar slowed the rally and is favoring the downward correction.
The cross reached the lowest level in three days at 20.49 and remains in the 20.50 area, with a negative intradark tone.. Between the current level and 20.45, a relevant support band can be found that, if it were to give way, would leave the USD / MXN with less upward force. The next support is at 20.30. To the upside, the cross needs to recover 20.65 for the dollar to regain vigor.
The behavior of the dollar is mixed on Thursday, the day after the decision of the Federal Reserve and before the official October employment report. The greenback appreciated against the G10 currencies (except the yen) but fell against several emerging markets.
The 10-year rate on the US bond is back at 1.55%. In turn, on Wall Street, the major indices fall slightly and retain much of Wednesday’s gains. The Fed’s decision to cut the buying program modestly, plus Jerome Powell’s signals of much stimulus for a long time, had a positive impact on equity markets, which was shifted to riskier assets.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
