- The Mexican peso accelerates the pace of the decline against the dollar.
- USD / MXN breaks multi-day range and is now targeting August highs.
The USD / MXN cut through days of range trades, breaking above 20.20 and climbing to 20.32, reaching the highest level since August 27. The price remains bullish, operating in the zone of highs.
A combination of a stronger dollar on all fronts from rising Treasury yields, coupled with some caution regarding emerging market currencies, has supported the USD / MXN.
The rally was also fueled by technical factors, as the USD / MXN broke the important short-term resistance zone of 20.20. To the upside, above 20.35 the next resistance that appears is 20.45, where are the August highs. A return below 20.20 would ease the bullish tone.
Thursday the Bank of Mexico announce its monetary policy decision. TD Securities analysts expect a rise of 25 basis points and that the central bank continues to sound “hawkish”, given the dynamics of inflation and the rise in rates in the US They also clarify that they expect there to be two members of the board of government that vote against, and asking that they do not raise the interest rates.
The The meeting is taking a back seat considering the events in the international markets with the rise in oil and generalized caution.
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.
