- The Mexican peso maintains its favorable tone against the dollar despite the context.
- Equity markets down on Monday, but not in favor of the dollar.
- USD/MXN with a bearish bias pressing on support at 19.25/30.
The USD/MXN is trading without major changes at the start of the week and remains close to 19.30 and its lowest in months. A weak dollar prevents the recovery of the pair, which is not affected by the decline in the markets.
The Mexican peso remains firm against the dollar. Neither the drop in the stock markets nor in the raw materials is generating an upward correction. The USD/MXN it went as high as 19.36 in the Asian session but only to drop to 19.30 in the subsequent session.
The USD/MXN continues to test the 19.25/30 area, and if firming below it would enable a larger pullback with possible target at 19.15, followed by 19.00/05. To the upside, at 19.40 is the first resistance to consider and then the key zone of 19.60 appears. A rise above, would draw strength from the Mexican peso.
The key data this week will be the US November employment report on Friday. The figures will serve to shape the medium-term expectations of the Federal Reserve and may have a broad impact on the market. In Mexico on Tuesday the unemployment data will be released.
technical levels
Source: Fx Street
I am a writer for World Stock Market. I have been working in finance for over 7-8 years, and I have experience with a variety of financial instruments. My work has taken me to Japan, China, Europe, and the United States. I speak Japanese and Chinese fluently.
