- Generalized rise of the dollar on all fronts, in the context of rising stocks.
- Eyes on US Treasury Yields
- Positive US data follows, on Friday the official employment report.
USD / MXN is rising for the second day in a row and trades at the highest levels in two days in the 20.35 zone. The bullish tone has gained momentum in the last hours, after the break at 20.30 and now it seems to point to the next relevant resistance which can be seen at 20.50.
The advance of the USD / MXN has as a key factor behind the appreciation of the dollar on all fronts. The greenback is favored mainly by the advance of the yields of the Treasuries. The 10-year rate is at 1.15%, very close to the highest since March of last year.
US economic data continues to surprise positively. Thursday was a larger-than-expected drop in jobless claims. The official employment report for January will be released on Friday, that now there is a great expectation that it will be much better than expected. In addition, the market is waiting for President Biden’s fiscal stimulus package.
Emerging currencies could no longer cope with the dollar, as in previous days, and this time they are weak. The Mexican peso is not among the worst performers. The decline in this group of currencies occurs despite the rise in shares on Wall Street, where the Dow Jones advanced 0.40% and the Nasdaq 0.35%.
Technical levels
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