- The dollar is gaining ground in the face of deterioration in equity markets.
- Big events ahead: Powell on Tuesday, US inflation on Wednesday.
The USD / MXN is rising at the start of the week, erasing the drop on Friday. The cross is trading at 20.47, high for the day, but still close to the recent low. The consolidation mode remains firm, in a context of downward bias.
The Mexican peso lost strength in recent days, but this did not imply a decline against the dollar. The USD / MXN gains, which even reached 20.75 on Thursday, were then followed by setbacks, showing that the downward bias is still continuing.
Anyway, The cross continues with strong support at 20.30 / 35. This level continues to contain casualties. If he gave in, he would be ready for more setbacks, with a near target at 20.15 and below 20.00 already emerges. To the upside, a return above 20.70 would ease the downside pressure, and support the dollar.
The Mexican peso remains firm against the dollar despite the rise in Treasury bond yields. Monday’s weakness has to do with a deterioration in equity markets. The major Wall Street indices are in the red. The Dow Jones lost 0.52% and the Nasdaq lost 1.75%. Should the bad mood intensify, the Mexican peso would come under pressure.
Technical Levels
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