- Strong correction of the Mexican peso due to a drop in the markets.
- Emerging market currencies erase some of the recent gains.
- USD/MXN jumps to 18.99, highest in a week.
USD/MXN is rising for the second day in a row, extending the strong rebound that began Wednesday from February 2020 lows near 18.55. In hours of the European session, the pair reached 18.99, the maximum in a week.
The price of the pair remains close to 19.00, with a bullish intraday tone. The main support of this advance is in the concerns in the markets. Wall Street’s main indexes lost around 1.5% on Wednesday and futures on Thursday point to a lower open of 0.5%.
Concerns about a possible global recession rose after US economic data on Wednesday, which included a larger-than-expected decline in retail sales and industrial production in December. The weekly jobless claims report and the Philadelphia Fed index will be released on Thursday. In Mexico, retail sales data for November will be released on Friday.
If the bad weather on the stock markets persists, emerging market currencies, including the Mexican peso, are expected to continue under pressure. The upward barrier of the USD/MXN is at 19.00/05, followed by 19.11 and the 20-day average at 19.17. In the opposite direction, first support is seen at 18.89 and then a firmer one at 18.70.
technical levels
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.
