- Mexican peso weakens as markets fall.
- The dollar rises on Wednesday ahead of the Federal Reserve minutes.
USD / MXN rose to the 19.95 zone on Wednesday, driven by a strong dollar throughout the market. Then it lost strength and fell slightly to the 19.85 zone, where it is trading.
The advance of the USD / MXN comes after having closed on Tuesday in positive territory, before having marked minimums in almost four months. This behavior implies that the 19.70 / 80 zone is still offering support and that the doors are open for a consolidation stage before new directional runs.
The climate in the markets is being negative for emerging market currencies. On the one hand, Treasury bond yields are rising and stocks are falling. On Wall Street, the Dow Jones lost 0.97% while the Nasdaq lost 1.36%. This context is weakening the Mexican peso.
The key event of the day that can have an impact is the publication of the minutes of the last meeting of the Federal Reserve that will come out in the American afternoon. In Mexico, due to the statements of Banxico officials, the chances of further cuts in interest rates are practically nil for the next few months, unless there is a sudden change in the inflationary scenario. A sharp drop in price indices is not on the horizon. Even in the statements, an official warned that if inflation continues to rise, they may have to withdraw stimulus.
No changes are expected for the next meeting of the Bank of Mexico June 24. The focus before will be on the midterm elections on June 6.
Technical levels
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