- The Mexican peso remains among the best performers in the last seven days.
- USD/MXN corrects higher from two-week lows.
- Wall Street is trading negative after a sharp rise last week.
USD/MXN is rising on Monday, correcting higher after several days of declines. In turn, optimism on Wall Street is once again giving way to caution, weakening the Mexican peso.
The S&P 500 fell 0.19% while the Dow Jones lost 0.02%. In the US, there was a higher than expected rise in durable goods orders and a surprise rise in pending home sales of 0.7% in May. The data had no impact on the market. On Thursday in the US, the key figure for the core index of personal consumption spending will be published. In Mexico, the unemployment number for May will come out on Tuesday.
expected correction
The USD/MXN fell to 19.81 during the European session on Monday, the lowest level in two weeks. It then bounced back up to 19.94. He is trading around 19.90, rising for the first time after having six daily declines in a row.
Despite this fall, the Mexican peso remains among the currencies that rose the most in the last week. The rise in shares on Wall Street, together with the rise in interest rates from the Bank of Mexico (and a statement stating that they may rise again by 75 basis points) have supported the demand for the MXN.
The USD/MXN pullback from 20.70 seems to have found a temporary floor above 19.80, which has become the support to break to enable more casualties. In the opposite direction, the first resistance appears at 19.95, followed by 20.10. Further up in the 20.20 area you can see a horizontal level and also the 100 day moving average.
Technical levels
Source: Fx Street
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