USD / MXN returns firmly above 20.00 amid a general rise in the dollar

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  • The greenback appreciated after positive data from the US.
  • Recovery on Wall Street limits USD / MXN advance.
  • Mexico: risk event on the weekend with the elections.

The USD / MXN climbed from 19.93 to 20.06, reaching the maximum in six days before a generalized advance of the dollar in the market. Economic data from the US triggered a widespread rally in the dollar.

In the preview of the important official US employment report for May, the figures from the ADP report and unemployment benefits, as well as the ISM for services were better than expected. This boosted the dollar. Treasury yields rose but moderately.

On Wall Street, stocks are falling although they have moved away from the pre-market floors in the last hour. This helped limit the USD / MXN advance. Technically if it affirms above 20.05, the pair would be ready for an upward extension.

Mexico: more growth, more inflation

In the quarterly inflation report released on Wednesday, Banxico projects GDP growth of up to 7% in 2021 and also raised inflation, expecting a 4.8% rate by the end of the year, returning to the 3% target for the second quarter of e2020 (unchanged).

The good economic data was that May had the best month in terms of job creation in the last six years.

Focus on Mexico It is in the elections on Sunday, where the Chamber of Deputies will be renewed. Presidential elections will also be held in Peru, where a victory for the leftist candidate, Pedro Castillo, could generate tensions in the Peruvian financial markets, with a possible effect on other countries.

Technical levels

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