- The Mexican peso among the best performing currencies in the week.
- AMLO nominates a new member for the Banxico Governing Board.
- Key data is coming in the US with non-farm payrolls.
USD/MXN is falling for the fifth day in a row, albeit without setting new weekly lows. The pair trades around 19.30, despite the strength of the dollar and ahead of important US economic data.
The Mexican peso is among the currencies with the best performance this week, without being significantly affected by the rise in the dollar, nor the caution in the markets, nor the decline in raw materials.
Technically USD/MXN is testing the support at 19.30. The Mexican peso needs to firm below that level to enable an extension of the bearish run, with next support at 19.15 and then 19.00/05. On the upside, key resistance is at 19.50/55, which if broken would leave the dollar with support for further gains.
New member for Banxico
The administration of the President of Mexico, Andres Manuel Lopez Obrador, proposed Omar Mejia Castelazo as a candidate to replace Gerardo Esquivel on the Board of Governors of Banco de México. The name generated surprise since not much is known about the candidate. If the appointment is approved by the Senate, he would become on the Board by the February meeting and would have an eight-year term.
The minutes of the last meeting of Banxico (December 15), when the interest rate was raised by 50 basis points to 10.5%. In the document it is read that the officials consider necessary a new rise in the interest rate in the next meeting. Going forward, they will assess the need for further adjustment.
NFP at the close of the week
Despite the stability of the USD/MXN, the dollar has been strengthening in the market, supported by the latest economic data from the US. On Friday at 13:30 GMT the US employment report for December will be published. , which will be a great challenge for the dollar and it is estimated that it will generate volatility in the markets.
Non-farm payrolls (NFP) are expected to have increased by 200,000 in December and the unemployment rate is expected to hold at 3.7%. The ADP private sector employment report released on Thursday beat expectations, with an increase of 235,000 jobs.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
