He USD/MXN started sideways on Wednesday, trading in a tight range between 18.60 and 18.70 throughout the Asian session. In the European morning, the pair has reacted to strong market risk aversion, rising nearly 40 cents to 19.02new daily maximum.
He Credit Suisse’s sharp plunge in the markets has generated a wave of risk aversion in the markets. The Swiss bank has fallen more than 20% after its main investor, the Saudi bank SNB, announced that it will not inject more money into the entity, in which it already owns a 10% stake. Fears of bankruptcy of the Swiss giant have caused a wave of declines in the main European banks and have generated new concerns in the world parquets in the face of the possibility of a new banking crisis.
The dollar has benefited from these fears. He DXY index It is up 125 points to 104.69, a new three-day high, and is currently trading above 104.63, gaining 0.93% daily.
USD/MXN traders will be closely watching market sentiment in the coming hours. Focus will also be on US retail sales data for February, which is released alongside producer prices and the Empire Manufacturing Index for March.
USD/MXN
With USD/MXN currently trading above 19.02, gaining 2.7% on the day, next resistance appears at 19.18, March 13 ceiling. Higher up wait 19.29, maximum of February 6. Above, the target is on 19.53highest level of 2023 recorded on January 3.
On the downside, the first support is at 18.55, minimum of March 14. If broken, the psychological zone of $18.00 it would be the next level of containment. Below, 17.89minimum of March 9 and of the last five years, is the main objective.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
