- The Mexican peso and emerging currencies in general remain firm against the dollar.
- USD/MXN is trading at its lowest since February 2020, around 18.90.
USD/MXN broke below 19.00 for the first time since February 2020 and fell to 18.91, where it is trading ahead of major US data. The Mexican peso remains firm against the dollar.
Emerging market currencies are living positive days supported by the rise in equity markets and a weak dollar, affected by the expectation that the Federal Reserve is close to ending its cycle of interest rate hikes.
Inflation data due to be released in minutes will be important for Fed expectations and for the dollar. The Persistent USD/MXN weakness needs continued market optimism and expectations of a dovish Fed. A change in this scenario could prompt a rebound in the pair.
In the last eight days, the USD/MXN has lost ground on seven. The downtrend remains firm and reinforced for the moment by the break of 19.00. If it continues below, an extension of the bearish tour can be expected. The next strong support is seen at 18.75, followed later by 18.55. A bounce may meet initial resistance at 19.00, followed by 19.25.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
