- Mexican peso remains firm against the US dollar.
- USD / MXN in a lateral direction, in the minimum zone for the month.
USD / MXN is trading around 20.75, unchanged from Monday’s close. The pair approached 20.90 but changed direction. It is maintained with limited tours.
In the last seven days, the Mexican peso has been one of the currencies that rose the most throughout the world. The decision of Banxico, of raising the benchmark interest rate by 50 basis points, above the market consensus of 25, had something to do with that. On Tuesday, the performance of the peso was below the average of the currencies, in a day marked by the recovery of the Turkish lira and the Chilean peso after sharp falls on Monday.
The short-term outlook for the USD / MXN still looks positive for the peso, although some consolidation would be expected these days, considering the reduction in the volume of operations. The currency withstood the deterioration in equity markets across the world quite well. A better sentiment here could help the MXN.
The firm USD / MXN break below 20.70, would clear the way for a bearish extension. The next strong support is located at the 20.50 area. To the upside, a return above 20.90 would ease the bearish tone while already above 21.20, the bias will favor the dollar.
Technical levels
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