USD / MXN stable with bearish bias, still above 21.00

• Mexican peso maintains a favorable trend against the dollar.
• USD / MXN is still unable to break below 21.00.

El USD/MXN is trading at the lowest levels of the day at 21.07, after having climbed in the previous one to 21.20. The price maintains a bearish bias, but with increasingly moderate and limited routes.

The dollar weakened in the last hours despite positive unemployment benefits and a rebound in Wall Street futures. The greenback continues to operate without a clear direction in the market, with the operators’ eye on the negotiations for more fiscal stimulus and the presidential campaign. On Thursday night the second and last will be given debate entre Trump y Biden.

The emerging currencies they are having mixed performance on Thursday, with limited variations. The worst performing is being the Turkish lira, which tumbled after the central bank held the benchmark interest rate unchanged.

In Mexico, the inflation data for the first half of October continued to show the annual rate above the central bank’s target. It was located at 4.09%, after registering a monthly variation of 0.54%, more than expected; for its part, the underlying CPI increased 0.14%, in line with expectations. The rise in inflation may increase the expectation on the side that there will be no further cuts in the benchmark interest rate by Banxico.

From a technical point of view, the USD / MXN maintains a bearish bias, although just a break below 21.00 would enable more lows. While in the opposite direction, above 21.40 pressures would ease and point to a consolidation at higher levels.