- Mexican peso remains in consolidation mode against the dollar.
- Market waiting for Powell’s words and Biden’s measures.
The USD / MXN has been trading for more than a day in a range, without a clear direction, staying below 20.00. The Mexican peso thus clings to the recovery of past sessions but still cannot break key levels that would allow a greater appreciation.
The Emerging market currencies show no significant changes against the dollar on Thursday. The market seems expectant in the preview of the speeches of the president of the Federal Reserve, Jerome Powell and the president-elect of the United States, Joe Biden. The latter will rule on its economic stimulus package, while the Fed awaits signals after the recent rise in Treasury bond yields.
The dollar against the main currencies has gained momentum in the American session, despite the fact that economic data showed an unexpected rise in requests for unemployment benefits. Wall Street operates with modest profits, which continues to support currencies like the Mexican peso.
From a technical point of view, USD / MXN remains bearish. The 19.75 area is the bottom of the current range, which if it yields could lead the price to 19.65 first, and below it the January lows near 19.60 will be exposed. To the upside, the first resistance is at 19.90, the upper limit of the lateral channel within which the pair is moving. The next resistances can be seen at 20.05 and 20.20.