USD / MXN remains sideways, in small range below 20.00

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  • The dollar with mixed results in the market.
  • Positive US data helps the dollar and boosts bond yields.
  • The Mexican peso stable and firm below 20.00.

The USD / MXN continues to trade around 19.90 without registering significant variations for days. The price on Wednesday in the hours of the Asian session reached the highest level at 19.92 and then fell to 19.86, already in the European one. The cross looks balanced below 20.00.

In line with overall lower volatility in the forex market (except for yen crosses), the USD / MXN moves in a smaller and smaller range around 19.90. The combination of a weak dollar at a time, equity markets with a cautionary tone and the rise in oil, favor that the Mexican peso remains firm without relevant changes.

Domestic events are not having a significant influence on the Mexican peso. Thursday will be a holiday in Mexico. For these days no economic impact data will be published.

In the US, the report from the Manufacturing Empire showed figures above expectations, which triggered a rebound in the yields of Treasury bonds, which on Tuesday had collapsed after inflation data.

The focus of attention is shifting to what will be the FOMC meeting next week. Changes in interest rates are not expected. Analysts will look for signs of the central bank’s next steps regarding the buyout program.

No signals, more lateralization

The USD / MXN continues to show no news and the technical indicators are mostly flat as a result of the lateralization that has taken several days. A close above 20.00 should enable more raises, while below 19.85, it would point to a test at 19.80. Below key support is at 19.70.

Technical levels

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