- Mexican peso among the worst performers across the board on Monday.
- USD/MXN breaks above 21.00 for the first time in two months.
The USD/MXN it jumped above 21.00 on Monday and peaked during the European session at 21.26, the highest intraday level since December 15. The Mexican peso is among the worst performers, affected by risk aversion.
Stocks around the world are falling on Monday. After a brief recovery, the main stock indices on Wall Street are approaching daily lows. The Dow Jones falls 1.33% and the S&P 500 1.55%. The war in Ukraine remains the key factor.
At the start of the trading week, crude oil prices rose nearly 10% after the US said on Sunday it is seeking to ban energy imports from Russia. Fears about the impact of the war on the global economy triggered a new flight to safety, weighing on some emerging market currencies. The Russian ruble is suffering a record drop, losing more than 20% of its value. USD/RUB rose above 150.00 during the last hour and is up 24%.
Economic data is likely to be offset by war headlines. Still, investors will be looking at Mexican and US inflation figures to be released on Wednesday and Thursday, respectively.
USD/MXN has a clear bullish bias. Above, it faces a strong resistance zone around 21.25/30; a break above should clear the way for more gains. To the downside, 20.95/21.00 is now immediate support, followed by 20.80.
Technical levels
Source: Fx Street
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