- USD/MXN stable despite dollar weakness and rise in stock markets.
- Price does not move away from 20.00, maintains lateral bias.
USD/MXN is trading in the 20.00 zone on Monday, at the start of the week and continues to sideline, which began earlier in the month. The Mexican peso fails to advance despite the rise in the stock markets.
On Wall Street, the Dow Jones is up 1.60% while the Nasdaq is up almost 3%. This implies a strong rebound after Friday’s crash. In addition, Treasury bond yields are declining slightly.
The context is negative for the dollar, which falls on almost all fronts. The yen is the worst with USD/JPY trading at a decade high near 149.00. At the same time, raw materials are advancing, also recovering positions.
The USD/MXN lateralization is taking place between 19.93 and 20.16. Just a close outside these levels could give clearer signals. Above the upper limit, the next levels are seen at 20.25 and 20.45. In the opposite direction, the next strong barrier is at 19.80.
Technical levels
Source: Fx Street
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