- The Mexican peso rises against the dollar and its main rivals.
- USD / MXN maintains a bullish bias, but below 21.00.
- The decision of the Bank of Mexico is coming.
The Mexican peso is rising modestly against the dollar, on a day when stocks are falling throughout the world. The USD / MXN remains close to 21.00, but for now below.
The price of the cross reached 20.94 on Thursday and then fell to 20.80, the low of the day. The Mexican peso is showing some strength on Thursday and is among the best performing, prior to knowing the decision of the Bank of Mexico.
The expectation about what the Bank of Mexico toThe point is that there will be no changes, although there are analysts who warn that the latest cut in the benchmark interest rate could take place. The recent rise in inflation diminished the chances of a more expansionary policy. In addition, the impact of the rise in US yields is a factor of concern. In fact, they are beginning to project hikes later in the year in the rate. The unknown about Banxico will be revealed in the afternoon and could set the tone for the future.
Another factor to watch for these hours is what the stocks are doing. Volatility is on the rise. Wall Street futures point to a negative open after a recent slide. If there were more falls, we would expect more upward pressure in the USD / MXN, to go to test 21.00.
As long as the price remains above 20.80 the bullish tone is expected to remain intact and strong. In the opposite direction, strong support appears at 20.50 / 60.
Technical levels
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