- Mexican peso without great variations against the dollar.
- USA: New low since March 2020 in unemployment benefit claims.
- Mexico: inflation slows down, remains above 5.50%.
The USD / MXN fell to 19.87 but then rebounded and is trading at 19.93 staying in the range of the last few days, consolidating below 20.00.
The dollar presents mixed results. Data from the US showed a larger-than-expected drop in initial jobless claims. For its part, in Mexico, the National Consumer Price Index registered an advance of 0.19% in August, and the annual rate was 5.59%, slightly below expectations, and still above Banxico’s target.
Volatility in the markets
The performance of the Mexican peso reflected a mix of issues from the financial markets on Thursday. While stocks are rising on Wall Street, Treasury yields are moving away from lows. Commodity prices, after an initial rally, are erasing gains.
In this context, the USD / MXN went from reaching lows in two days to quickly return to the 19.90 zone, which is where it has been operating in the last few days.
The USD / MXN bias still has bearish technical signals behind but as long as it remains above 19.90, the downs are limited. A confirmation below would enable an extension to test the next support at 19.80. To the upside, a return above 20.00 would ease downward pressures; and if it exceeds 20.10, the dollar would be positioned for a possible upward extension.
Technical levels
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