USD / MXN rises for four days and affirms above 20.00 before the Fed

• Volatility among emerging countries in the run-up to the Fed meeting.
• USD / MXN flirts again with levels above 20.00.

The USD / MXN on Tuesday reached 20.19 before reversing the trend and ending the day far from the highs and around 20.00. On Wednesday the price fell to 19.95 before bouncing higher. After the start of the American session it is at 20.07, the maximum of the day pending the statement from the Federal Reserve

The crossover has been experiencing an increase in volatility for a week now, which favors daily jumps. The bias continues to be bullish in the short term in the USD / MXN, but as it was evident it is not exempt from strong setbacks.

Part of the volatility was generated by data from the US and by expectations about the Federal Reserve meeting. At 18:00 GMT the decision of the US central bank will be known. No changes are expected in the interest rate, or in the purchase program. The question is on what he will pronounce regarding the future and especially the purchasing program.

Mexico: S&P ratifies note, indicates risks

The rating agency Standard & Poor’s ratified the BBB note of the Mexican debt, with a negative outlook. The risks reported by S&P have to do with the situation of Pemex, certain government policies and the uncertainty about regulatory bodies.

The electoral result of two weeks ago removed what would have been greater uncertainty about the future as the ruling Morena party did not obtain a qualified majority. Andrés Manuel López Obrador also affirmed that they will seek three constitutional reforms: the electrical, electoral reform, and that of the national guard.

A positive factor for the Mexican peso these days is the rise in the price of Petroleum. The Mexican mix broke $ 68 on Tuesday for the first time since October 2018.

Technical levels