- The Mexican peso remains negative for the week against the dollar.
- Rise in Treasury bond yields and caution in markets drives USD/MXN.
- Cross path to end a streak of four weeks with casualties.
USD/MXN trades in the 20.15 zone, positive for Friday and clings to weekly gains, thus snapping a four-week low rebound. Upside remains capped by the 20.20 area, while in the opposite direction, 20.07 is becoming relevant support.
For the second day in a row, the USD/MXN is holding above 20.00, reflecting some underlying bullish strength. The main factor is the general rise in the dollar.
The greenback remains strong on expectations of a stronger than previously expected tightening by the Federal Reserve. In addition, there is a certain caution in the stock markets, which although they rose on Friday, during the week they are negative.
AMLO yes or no
On Sunday there will be elections in Mexico. This is a referendum to decide if President Andrés Manuel López Obrador should be revoked from office or if he should continue in office. For it to be valid, more than 40% of the electorate must vote.
The main promoter of the vote and of the campaign is López Obrador himself. Barring an abrupt negative outcome for AMLO, no shocks are expected.
Another novelty in Mexico is that the Supreme Court validated the reform of the Electricity Industry Law, promoted by the López Obrador administration and which generated great controversy.
Technical levels
Source: Fx Street
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