USD/MXN rises to a two-week high near 20.20 amid tensions in global financial markets

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  • The dollar advances firm on Friday in a climate of risk aversion.
  • USD/MXN tests short-term resistance.
  • Positive data from the US gives more support to the greenback.

USD/MXN rose from near 19.80 on Thursday to a two-week high on Friday, on a general strengthening of the dollar and a sharp decline in financial markets.

Emerging market currencies are under pressure and this time they are not escaping the strength of the dollar. On Wall Street, stocks are losing more than 1.30%, metals are plummeting and the price of a barrel of WTI is down more than 5%.

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In a black for the financial markets USD/MXN climbed to 20.17, the highest since September 7. It remains close to the high and if it breaks firmly above 20.17, more rallies and a test of the 20.25 barrier would be expected. If there is a daily close above this last level, the dollar would gain support to extend the advance.

The greenback was not only favored by the decline in equity markets but also by the rise in Treasury bond yields, which moderated in recent hours. The recovery in bonds ran into a much better than expected figure from the preliminary PMI for September.

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In Mexico On Thursday, the outstanding data was that of inflation for the first half of September, which showed a rise of 0.41% and the annual rate at 8.76%, just below the previous reading of 8.77% (maximum in decades). These figures, together with the rise of 75 basic points in the interest rate of the Federal Reserve on Wednesday, they practically discount that Banxico will do the same next week.

Technical levels

USD/MXN

Overview
Today last price 20.1503
Today Daily Change 0.2066
Today Daily Change % 1.04
Today daily open 19.9437
trends
Daily SMA20 20.0132
Daily SMA50 20.1625
Daily SMA100 20.1338
Daily SMA200 20.2778
levels
Previous Daily High 20.0776
Previous Daily Low 19.8402
Previous Weekly High 20.1616
Previous Weekly Low 19.7533
Previous Monthly High 20.8261
Previous Monthly Low 19.8019
Daily Fibonacci 38.2% 19.9309
Daily Fibonacci 61.8% 19.9869
Daily Pivot Point S1 19.8301
Daily Pivot Point S2 19.7165
Daily Pivot Point S3 19.5927
Daily Pivot Point R1 20.0674
Daily Pivot Point R2 20.1912
Daily Pivot Point R3 20.3048

Source: Fx Street

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