USD/MXN gains momentum and rises to 19.10 after government presents a new plan for Pemex


  • Mexican peso among worst performers, after the government revealed its new plan for Pemex. 
  • Greenback gains across the board supported by US data. 

The USD/MXN pair broke a 1-day range to the upside and is trading now at the highest level in two days with a strong bullish momentum. After spending 24 hours between 18.95 and 18.99, it jumped to 19.09. As of writing trades near the highs, looking at the 19.10 resistance area. 

The move to the upside was driven mostly by a weaker Mexican peso; also amid a stronger US Dollar. June Retail Sales data for the US showed higher than expected gains and triggered a move to the upside in US yields and boosted the greenback, particularly against majors. 

MXN: No love from the new plan 

The Mexican peso tumbled across the board following the released of Pemex’s business plan. According to the project, Mexico will reduce the tax burden of the state oil company by around $7billion over the next two years and inject capital to build a new refinery and raise output.

Pemex credit rating was downgraded several times over the last quarter, and more are expected. So far, the plain failed to impress investors. Among the concerns is the plan to build a new refinery that could cost $8 billion. Last week, former Finance Minister Urzua resigned, among other things, opposing the new refinery.  Later today, more details will be presented. 

USD/MXN

Overview
Today last price 19.0854
Today Daily Change 0.1104
Today Daily Change % 0.58
Today daily open 18.975
 
Trends
Daily SMA20 19.0842
Daily SMA50 19.1686
Daily SMA100 19.1298
Daily SMA200 19.3806
Levels
Previous Daily High 19.0042
Previous Daily Low 18.9215
Previous Weekly High 19.3628
Previous Weekly Low 18.8643
Previous Monthly High 19.8799
Previous Monthly Low 18.8932
Daily Fibonacci 38.2% 18.9531
Daily Fibonacci 61.8% 18.9726
Daily Pivot Point S1 18.9296
Daily Pivot Point S2 18.8842
Daily Pivot Point S3 18.8469
Daily Pivot Point R1 19.0123
Daily Pivot Point R2 19.0496
Daily Pivot Point R3 19.095

 


 

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