- Mexican peso remains weak in the market.
- The dollar gains moment, although lying down, in the preview of Powell’s speech.
- USD / MXN technical bias continues to point higher.
The USD / MXN is rising on Friday and operates above 20.40, a maximum in days and pointing to the August peaks that are located at 20.46. The relative strength of the dollar is combined with the persistent weakness of the Mexican peso.
The peso remains among the worst performing currencies these days, giving the USD / MXN extra support. In addition, the rise in the yields of Treasury bonds in the context of several interviews of members of the Federal Reserve board and in the previous of the words of Jerome Powell, Fed Chairman at the Jackson Hole Symposium.
If the raises are extended above 20.45, the next strong barrier in USD / MXN is located at 20.55. Above are May peaks at 20.74. The bias to the upside, it is expected to remain firm and solid as long as the price remains above the 20.10 / 20.05 band, where horizontal supports converge, and the moving averages of 20, 55 and 200 days.
Mexico data and Banxico minutes
On Thursday there was an increase in the unemployment rate in July from 4.0% to 4.1%. But the data from the labor market report was the creation of 1.3 million jobs, the best month so far in 2021. In this way, the economy recovered the jobs that had been lost during 2020. The Economists’ warning is about the quality of job creation. The rise in the unemployment rate was due to an increase in the labor force.
In a different report, the minutes of the last Banco de México meeting were released. There both Galia Borja and Gerardo Esquivel, members of the Governing Board, stated that the position of raising interest rates could lead to incorrect signals.
Technical levels
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