- The Mexican peso is rising against the dollar amid an improvement in the markets.
- USD / MXN continues with an upward trend, but with a falling moment.
USD / MXN is trading unchanged Monday around 21.75, validating part of last week’s rally. The cross had hit a one-year high above 22.00 before reversing after the exaggerated move.
The USD / MXN declines have been moderate and contentious for the time being by 21.65. A confirmation below that level would ease upward pressures. The next support is around 21.35. In the opposite direction, if it is affirmed above 21.90, a new test at 22.00 would be expected. Above the next resistance is at 22.15.
The abrupt rise seems to have lost moment for now. More hikes look more likely to see further declines in equity markets accompanied by a rise in the dollar against emerging market currencies. On Monday the tone in the markets is of recovery, which favors the stabilization of the USD / MXN.
The decline in the price may be limited by the rise in the yields of Treasury bonds, which support the dollar. The dollar rises against the main currencies but falls against those linked to commodities. The DXY climbs 0.30% and operates at 96.35, cutting Friday’s losses.
What happens with the new variant of COVID will continue to be key for the markets and for the USD / MXN. In turn, the US data will also have great relevance especially the employment report on Friday. On MexicoThe highlight will be on Wednesday with the publication of Banxico’s quarterly inflation report on Wednesday. In addition, the expectation for the new nomination to lead the central bank continues. Rodríguez’s footsteps will be closely followed.
Technical levels
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