- Mexican peso is weakened after the Banxico meeting.
- USD / MXN continues to point higher, although for now slowed by 20.70.
USD / MXN is falling on Friday, trading just above 20.60, after hitting 20.72, hitting the highest level in a week. The Mexican peso is among the worst performers of the week.
Banxico rises, the peso does not
The Bank of Mexico announced on Thursday a 25 basis point hike in the benchmark interest rate to 5%. The upward cycle is also expected to continue to limit the general rise in prices. The decision did not generate surprise and the expectation is that there will be more rises in the next meetings.
What weakened the Mexican peso is that there was the possibility of a higher rise in the interest rate, which in the end did not happen. During the week, the peso is among those that lost the most ground this week.
The cautious climate produced in equity markets following the US inflation data, together with a rise in Treasury bond yields and a decline in commodity prices, played against the currency. Mexican.
USD / MXN is trading at ranges between 20.30 and 20.65. The first attempt to overcome the barrier was unsuccessful. If it does, the next resistance is at 20.80. To the downside, at 20.45 there is intermediate support. A close below 20.30 is targeted at 20.15.
Technical levels
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