- The Mexican peso rose again against the dollar, after Monday’s fall.
- USD / MXN is still bearish, but without breaking 20.00.
USD / MXN is declining on Tuesday after rising modestly on Monday. The price stands at 20.05 and continues to target the 20.00 area, which is the key short-term support. Optimism in stocks continues to prop up emerging currencies and play against the dollar.
The news that the US president, Donald Trump, enabled the transition, gave a boost to the bags that added to yesterday’s news of the vaccine. The improvement in the markets had its impact in Mexico, making the country risk fall to the lowest since March.
Another positive data in Mexico was the inflation known on Tuesday. In the first half of November, the Consumer Price Index rose 0.04%, less than the 0.24% of the market consensus. The underlying fell 0.11%, with an increase of 0.09% expected. If this trend continues, Banco de México would have more freedom to decide a new cut in the reference interest rate.
Another factor in favor of the Mexican peso is the rise in the price of oil, which is favored by expectations of a return to normalcy. WTI is trading at $ 43.50 and is testing August highs.
From a technical point of view, the USD / MXN continues with a downtrend that is expected to remain firm while it is below 21.50, where it is passing a bearish line.
On Monday the USD / MXN traded momentarily below 20.00, for the first time since March. Hopefully you will try lower levels again. A consolidation will point to more declines with possible targets at 19.80 and then 19.55.
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