- Mexican peso in neutral ground for the day and the week against the dollar.
- USD / MXN maintains a bearish bias, but needs to confirm a break of 19.75.
USD / MXN is trading at the 19.90 zone on Friday, continuing the sideways rallies with no clear direction. The Mexican peso remains firm below 20.00, although it cannot advance clearly.
The rises in the stock markets are supporting the demand for riskier assets. At the same time, the dollar is not so weak, which limits the possible fall of the USD / MXN. Among emerging currencies, those of Latin America underperformed compared to other regions.
In the US, the preliminary PMI report for May will be published, and the data for the sale of existing homes for April. UK and Eurozone data were above expectations, helping stocks sentiment. Wall Street futures point to a positive open with gains in the order of 0.35% in the main indices.
From a technical point of view, USD / MXN remains sideways in the short term. The range of consolidation between 19.75 and 19.95, would be expected to continue. Just a close above 20.00 or below 19.70 would be a strong signal for other types of runs, leading to a rise in volatility.
Technical levels
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