USD/MXN drops back under 25.00, Mexican peso recovers from record lows
- Mexican peso turned positive versus the US dollar and recovered from all-time lows.
- USD/MXN falls to 24.72 during the American session, after reaching 25.77.
The Mexican peso opened the week falling across the board following Mexican President Andres Manuel Lopez Obrador (AMLO) announcements during the weekend. The USD/MXN jumped to 25.77, hitting a new record high. Over the last hours, the Mexican peso recovered ground and is now in positive territory versus the greenback.
AMLO mentioned several public works projects and low-interest loans to mitigate the impact of the coronavirus on the economy. He ruled out more stimulus, or lower taxes and announced more fiscal relief to Pemex. His speech failed to boost confidence and weighed on MXN.
Risk appetite on Monday limited the rally of USD/MXN and favoured the reversal. From the peak above 25.70 during the Asian session, the pair dropped 4% to 24.74. As of writing, it trades at 24.75 with the bearish momentum intact.
In Wall Street, equity prices are sharply higher. The Dow Jones gains 5.04% and the Nasdaq 4.92%. US bond yields are up too, with the 10-year at 0.66%, the highest since March 31. Some optimism that the worst of the coronavirus pandemic could soon be over boosted market sentiment.
USD/MXN technical levels
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
