- Mexican peso among the weakest on Tuesday.
- US: Retail sales rise less than expected in October.
The USD / MXN is rising modestly on Tuesday, in a day where the dollar presents mixed results. The advance of the crossing occurs before a fall in the stock markets throughout the world, which begin to cut the recent gains.
On Monday, the USD / MXN fell to a week-long lows at 20.14, before beginning a bounce that is spreading around this time. The cross operates at the highs of the day at 20.40, with a very short-term bullish bias, but with the downtrend still dominant.
From a technical point of view, the USD / MXN remains pointing lower and could go to test the key support at 20.00. The break of this level would enable more lows. In the opposite direction, the first resistance is at 20.65 followed by 20.85.
The momentum in favor of the Mexican peso has dissipated on Tuesday, before a fall of the bags. The optimistic tone that emerged after the news of Moderna’s vaccine has been reduced. In this context, the dollar is operating with mixed results, rising against several emerging markets and those linked to commodities, but negative against the yen and the most important European currencies.
Economic data from the US did not help the dollar much. The October retail sales report showed a rise but below expectations. In addition, all the indicators were lower than the consensus and there were downward revisions to the previous month’s figures.
The weakness of the dollar is reflected in the fall of the DXY, which is at a one-week low at the 93.40 area. But, the greenback is strong against emerging companies due to a certain aversion to risk. Among this group, the Mexican peso is the Tuesday that fell the most.
Technical levels
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