- The Turkish crisis continues to hit Emerging Markets, boosting the demand for the US dollar in Latin American.
- US Dollar up 9.15% vs TRY, 2.80% vs Argentine peso, 2.55% vs South African rand and 1.25 vs Brazilian real.
- USD/MXN is up for the fourth consecutive day and is consolidation above 19.00.
The USD/MXN pair is headed toward the highest daily close since July 2, after rising during four days in-a-row. From last week bottom, the pair climbed 4.70%, amid a decline across Emerging Market assets. The crisis in Turkey boosted the US dollar in Latin America.
The decline of the USD/MXN that started in mid-June ended abruptly last week. It bottomed at 18.39 and then reversed sharply. It accelerated the upside on Thursday when the Turkish crisis escalated. Today it opened with a bullish gap above 19.00 and peaked at 19.36, the highest intraday level in a month.
As of writing it was trading at 19.20, up 1.65% for the day, far from the top but still holding a bullish tone. So far, the area around 19.30 capped the upside but upside pressures are likely to remain in place as long as the crisis in Turkey continues to trigger concerns across Emerging Market.
Technical perspective
“USD/MXN’s slide from its June peak at 20.9612 halted at 18.4052, within the 18.4487/18.3090 support area (November 2017 as well as this year’s January and February lows), before a swift trend reversal took place. Confirmation of such a bullish reversal would be a rise and daily chart close above the mid-July high at 19.1681”, wrote analysts at TDS.
On the flip side, according to them, only a daily close below the support of the February low at 18.3090, would put the 17.94 area in the frame. “Further support comes in along the 2016-18 support line at 17.7927 and at the 17.4465 July 2017 low.”
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. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD post moderate gains on solid US data, weak Aussie PMI
The Australian Dollar registered solid gains of 0.65% against the US Dollar on Thursday, courtesy of an upbeat market mood amid solid economic data from the United States. However, the Federal Reserve’s latest monetary policy decision is still weighing on the Greenback. The AUD/USD trades at 0.6567.
EUR/USD recovers to top end of consolidation ahead of Friday’s US NFP
EUR/USD drove back to the top end of recent consolidation on Thursday, recovering chart territory north of the 1.0700 handle as market risk appetite regains balance heading into another US Nonfarm Payrolls Friday.
Gold recoils on hawkish Fed moves, unfazed by dropping yields and softer US Dollar
Gold price clings to the $2,300 figure in the mid-North American session on Thursday amid an upbeat market sentiment, falling US Treasury yields, and a softer US Dollar. Traders are still digesting Wednesday’s Federal Reserve decision to hold rates unchanged.
High hopes rouse for TON coin with Pantera as its latest investor
Ton blockchain could see more growth in the coming months after investment firm Pantera Capital announced a recent investment in the Layer-one blockchain, as disclosed in a blog post on Thursday.
NFP: The ultimate litmus test for doves vs. hawks
US Nonfarm Payrolls will undoubtedly be the focal point of upcoming data releases. The estimated figure stands at 241k, notably lower than the robust 303k reported in the previous release and below all other readings recorded this year.