- The Mexican peso remains firm against the dollar, which maintains some general weakness.
- USD / MXN falls for the fifth time in the last six days.
USD / MXN is falling again on Tuesday and is trading below 20.30, the lowest since late October. The cross bounced hours ago to 20.37, but quickly returned below 20.30, keeping the very short-term bearish bias intact.
A confirmation at levels below 20.30 would leave USD / MXN vulnerable to further declines. In the opposite direction, the first resistance of consideration is at 20.45 followed by 20.65.
On Mexico it was known that the Consumer’s price index it rose 0.84% in October, higher than the 0.785 expected. The annual rate went from 6.0% to 6.2%. The data that was released will reinforce expectations of a rise in the interest rate on Thursday by Banxico from 4.75% to 5%.
Also in the US, inflation data were published with the Producer Price Index, which registered an advance of 0.6% in October in line with expectations. On Wednesday the Consumer Price Index will be released.
The other current issue in the US that can impact the rest of the currencies is the growing possibility that Jerome Powell, the chairman of the Federal Reserve is replaced at the end of the year when his current term ends. It was learned that Biden was meeting with Lael Brainard. They estimate that she may be a candidate for that position. Specialized analysts place her in a more dovish position than Powell. The latter has been a contributing factor for Treasury bond yields to remain in the area of recent lows, playing against the dollar.