USD/MXN finds support at 19.00, down for the day despite Pemex's concerns

  • Mexican peso rises against US Dollar and erases most of yesterday’s losses. 
  • USD/MXN back to the level it had before Pemex’s plan announcement. 

The Mexican peso dropped modestly yesterday across the board following the presentation of the government plan for Pemex, the heavily indebted state oil company. Today it recovered from the decline, even after warnings from rating agencies. 

Moody’s Investor Services mentioned that the government should significantly increase financial support for Pemex to take its capital investment to levels needed to fully replace its reserves. The company is near to losing its investment-grade rating. Another downgrade from the major rating agencies could force the selling of large amounts of Pemex bonds.

MXN assets remain steady today while the US Dollar dropped modestly across the board amid lower US yields. “Treasury yields slipped after Fed officials reinforced expectations that they would cut interest rates this month and suggested that they are debating the depth of that cut. A sense of renewed uncertainty in global markets was also shown in peripheral risk premiums, as peripheral risk premiums halted its downward trend,” wrote BBVA analysts. 

USD/MXN back to 19.00 

The pair bottomed today at 18.99 and then bounced to the upside, to the 19.05 near Wall Street’s closing bell. The recovery of the Mexican peso was capped by the 19.00 area. USD/MXN continued to move in a wide range between 19.30 and 18.90. A break to the upside would clear the way for a rally to 19.45/50 while under 18.90 a test of 2019 lows seen at 18.75 seems likely. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD extends recovery, still below 1.1110

The EUR/USD pair continues recovering from a daily low of 1.1051, as Fed’s Powell dovish words pressure the greenback, but still develops below the critical 1.1110 resistance area. Market’s reaction limited so far.


GBP/USD holds on to gains above 1.2200

Sterling retains its early gains as demand for the greenback recedes amid “significant risks” to the US economy. Fading hopes for a new Brexit deal keeping GBP/USD upside limited.


USD/JPY: Firmer above 106.50 amid risk-on, softer Japanese data

The Japanese Yen remains on the back foot, possibly due to dismal Japanese inflation data and the resulting rise in the dovish BOJ expectations. USD/JPY, further, benefits from rallying Treasury yields and S&P 500 futures ahead of Fed's Powell speech.


Gold climbs to weekly tops, further beyond $1510 level

Gold reversed an early dip to $1493-92 support area and spiked back closer to weekly tops in reaction to China's retaliatory tariffs, albeit lacked any strong follow-through.

Gold News

Jackson Hole: The audiences of Chairman Powell

Federal Reserve Chairman Powell will be addressing two audiences when he speaks to the high life of global banking and finance at the central bank’s annual end of summer conclave in Jackson Hole, Wyoming on Friday.

Read more