USD / MXN maintains bearish bias and tests again 19.90

• The Mexican peso remains among the top performers on Thursday.
• The dollar remains weak amid falling bond yields and optimism in markets.

El USD/MXN is falling again on Thursday and trading in the zone of weekly lows around 19.93, very close to the 19.90 support zone. The Mexican peso remains firm against the dollar in a context of general weakness of the dollar and a rise in global equity markets.

The Mexican peso is not the one that rises the most these days, but it has a good performance in general. It was not affected by the expectation that Banco de México could stop raising the interest rate. The events of the Treasury bond market, where it is discounting that the Federal Reserve would take a little longer to cut the purchase program, keeps yields limited and in turn, supports the equity markets.

The dollar It falls back on the market on Thursday. The data of a fall in unemployment benefit requests to the minimum since March 2020, did not serve to give it a boost. The focus in terms of data is on what will be the official August employment report on Friday, with non-farm payrolls.

On MexicoIn presenting his third management report, President Andrés Manuel López Obrador reported that he will present a constitutional reform initiative in electricity this month, in order to apply his policy in the energy sector. The current reform is stopped by justice.

Short-term outlook

The break below the 20.05 zone, left USD / MXN pointing further south. That movement is materializing. It is testing 19.90, and below it is at 19.80, a stronger key support, which would be expected to hold up to the first test.

In the opposite direction, a return above 20.05 would ease downward pressures. Above, the next resistance is seen at 20.25.

Technical levels