- The Mexican peso remains one of the best in the emerging group.
- USD / MXN continues to lateralize between 20.80 and 20.50.
USD / MXN is trading virtually unchanged Tuesday, around 20.60. It previously posted a daily high at 20.71. The price continues to make lateral movements between 20.55 and 20.80, between the strength of the Mexican peso and the pressures on emerging assets.
Considering the performance of the last five days, the Mexican peso is among the best performing currencies within the group of emerging currencies. The proximity to the mid-term elections and the proposal to reform the energy system by Mexican President Andrés Manuel López Obrador have not generated friction over the currency.
The decision of Banxico of holding the interest rate last week, is a supportive factor, although it reflects other problems, such as fears for the future and the rise in inflation.
The weight has been favored by the optimistic climate on Wall Street, with the expectation of a rapid recovery of the US economy, and the impact of this on Mexico.
From a technical point of view, the breakdown of the USD / MXN below 20.50 would leave the peso strengthened for an extension towards 20.30 initially. While in the opposite direction, above 20.80, a test to the 21.00 area could be expected.
Technical levels
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