- USD/MXN continues with downside risks, moving sideways.
- The dollar rises against the G10 currencies despite a drop in yields and a rise in stock markets.
The USD/MXN is trading on neutral ground, unaffected by the strength of the dollar, and supported in part by the rise in global equity markets. The pair operates around 19.44, moving sideways, unable to establish itself at the moment on 19.50.
Wall Street futures are rising, although they have moved away from the session highs. At the same time, so do Treasury bonds. Despite the context, the dollar is rising against the G10 currencies, although not clearly against those of emerging markets.
The market is moving between optimism and caution in the return of normal activity, with high volatility in metals and oil. This occurs without news, or clear data from behind.
The final reading of the US S&P Global Manufacturing PMI is due to be released on Tuesday and shouldn’t be any big surprises. More important figures will begin to be released on Wednesday with the ISM Manufacturing. That day, the Federal Reserve will publish the minutes of the last FOMC meeting. The ADP private sector employment report is due on Thursday and the December Nonfarm Payrolls and unemployment rate on Friday.
This week’s data can have a big impact on the markets and also on the USD/MXN. The pair comes to them with a bearish bias, which will hold as long as it is below 19.60. A return above will imply that it has broken above the major 20 and 55 day moving averages, leaving you positioned for a bullish extension.
On the downside, key support is at 19.30. If that area is lost, the next target is at 19.15, and below, a major barrier emerges at 19.00/05.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
