- Mexican peso clings to recent gains against the dollar.
- USD / MXN tests the 19.85 zone.
USD / MXN is falling modestly on Monday. It recently tested the one-week lows to which it fell at 19.85 on Friday. The cross has remained so far this day below 20.00, and close to the recent low, in a combination of the strength of the Mexican peso and the weakness of the dollar.
Optimism in equity markets continues to reflect an appetite for riskier assets, which favors demand for the Mexican peso. Although, the currency has not been one of the most favored in recent days, it experienced a significant reversal and broke an important technical level.
On Friday it became known that inflation in Mexico (annual) reached 6.08% in April, the highest level since December 2017. Inflation moved further away from Banxico’s target. On the positive side, some economists estimate that there are signs that this would be a peak since a decline would begin.
Anyway, the key data on Friday was the US employment report. which showed figures below expectations and triggered a sharp decline in the dollar, which took the USD / MXN below 20.00.
The crossing still retains that weakness and eHe’s testing the 19.85 zone. If dollar weakness persists along with some stability in equity markets, a break below could occur, exposing strong support at 19.80. A breakout here would suggest more losses ahead. To the upside, just over 20.05, the bearish tone would be relieved.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
