- Emerging currencies with mixed results against the dollar, the peso among the worst on Tuesday.
- USD / MXN rises again but maintains a bearish bias.
USD / MXN is in positive territory for the second day in a row. The price rose to 19.94, the highest level since Friday, and then fell back to the 19.90 area where it is trading. The intraday bias is bullish, while from a broader perspective, the downtrend appears to remain stronger.
The rises are expected to remain limited as long as the USD / MXN is not confirmed above 20.05. If it does, it could extend to the next strength resistance seen at 20.25 / 30. In the opposite direction, now 19.90 is the immediate support and below fast appears 19.85 and then 19.80. As you can see, the current one is a consolidation band. In case of breaking the 19.80 floor, there is scope for more falls that could lead to the crossing to 19.50.
Data, Fed and records
The The Mexican peso could not be favored by the good climate in the equity markets. This time the new records on Wall Street did not boost the MXN. The negative factor is the advance in Treasury yields, but the increases are still moderate. For days that the Mexican peso has been running behind in the universe of emerging markets.
On Mexico It was known on Monday that the economy contracted again in February, reaching three consecutive months with falls, although it is expected to have rebounded in March. First quarter GDP growth data will be released on Friday.
The situation in Mexico is expected to be increasingly influenced by economic performance, inflation figures and what happens around the mid-term elections. In the shortest term, the Federal Reserve meeting, with Wednesday’s statement being the closest key event for the crossover.
Technical levels
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