- The Mexican peso under widespread pressure amid concerns about the economy.
- The USD / MXN points to 21.00, for the fifth day in a row.
The USD/MXN it is rising for the fifth day in a row on Monday and has accelerated the move to 20.85, the highest level since October 12. It remains near the highs with the bullish tone intact.
The MXN is being hit by growing concerns about the health of the Mexican economy after a GDP contraction was reported last week for the first time since the COVID recovery began. At the same time, inflation remains high, forcing Banco de México to raise rates.
The deterioration in the economic outlook weighs on the Mexican peso, which continues to be among the worst performers. Not even an improvement in global risk appetite and crude oil prices helped the currency.
Higher interest rates in the United States are also affecting the MXN. On Wednesday, the Federal Reserve will announce its decision on monetary policy that could affect yields. Another relevant event will be the publication of the US employment report on Friday.
The USD / MXN rally is now looking to the October highs of 20.89. If it breaks to the upside, attention would turn to the 21.00 area. The immediate short-term support has moved to 20.70 and 20.50.
Technical levels
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