- Mexican peso rises further supported by risk appetite and NAFTA optimism.
- Dollar falls to lowest since September 2017 against Peso.
The USD/MXN pair is falling on Monday for the fifth day in a row and heads for the lowest close since September. It bottomed at 17.98 and then rose back above 18.00. It was hovering around 18.03.
The Mexican peso is the top performer over the last five days benefited by optimism about a deal on the renegotiation of the North American Free Trade Agreement. Also, risk appetite and higher crude oil prices continue to offer support to the Peso.
Also on Monday, a weak US Dollar contributed to the slide of the USD/MXN that for the first time in months reached intraday levels under 18.00. It bounced back above but the trend continues to point to the downside and the momentum continues to favor the Mexican peso. If in the coming sessions, USD/MXN holds above 18.00 the risk of correction would rise significantly.
Levels to watch
To the downside, the immediate target below 18.00 is seen at 17.90 followed by 17.80; below the next strong support might lie at 17.60 (September lows). On the flip side, resistance levels are seen at 18.08, 18.15 and the 18.30 area.
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