- The Mexican peso trims weekly gains against the dollar.
- Falling equity markets weigh on emerging market currencies.
- USDMXN falls seem limited as long as it is above 19.30.
The USDMXN it rose from 19.30 and reached a high of 19.47, the highest level in three days during the American session on Thursday, boosted by a stronger dollar and deteriorating risk sentiment.
The dollar rises across the board
US economic data released on Thursday showed an unexpected decline from the Philadelphia Fed to -19.4 in November from -8.7. In another report, continued claims for jobless benefits rose to the highest level since April. Home starts and building permits fell in October, although the numbers exceeded expectations.
The dollar initially fell but then regained strength buoyed by rising US yields and also risk aversion. On Wall Street, the Dow Jones falls 0.60%, the Nasdaq 0.80% and the S&P 500 0.98%. Deteriorating risk sentiment weighs on emerging market currencies, with the Mexican peso not among the worst performers.
The trend continues to favor the MXN
Despite rising on Thursday, the USDMXN remains bearish. In the short term, it continues to consolidate after finding support above 19.30. A firm break down would open the door for further losses targeting 19.15 initially and then 19.00/05.
To the upside, initial resistance lies at 19.50 and then a stronger zone at 19.60. A daily close above would ease the downside bias, suggesting a test of 19.80.
technical levels
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
