- The Mexican peso recovers ground against the dollar, it remains close to its lowest in months.
- The 21.00 barrier in USD / MXN remains firm.
USD / MXN is trading just above 20.80, in negative territory for the day. On Wednesday the price climbed to 9:00 p.m. where it changed direction. After braking again in that area, there was a slight correction, which is ongoing.
Wednesday’s rise was driven by a climate of risk aversion and falling stocks. This caution seen in the markets keeps the Mexican peso and emerging market assets under pressure. The current correction is limited and the underlying trend remains clearly bullish.
Data on US jobless claims will be released on Thursday. Although the most relevant will be Jerome Powell’s speech, the chairman of the Federal Reserve, in the current context of rising Treasury yields.
Another factor that affected the Mexican peso was the approval in the Mexican Senate of the electricity industry reform law. The impact was more in the previous than with the approval that was already discounted. In fact, this week, the weight among emerging markets is one of those that have managed to sustain the most. In part this may be due to the 21.00 barrier.
If the USD / MXN confirms above 21.00, a bullish extension could be expected. Resistances are at 21.10, 21.30 and then a stronger barrier will follow at 21.50.
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