USD/MXN hits fresh weekly lows under 23.00 as Mexican peso soars.


  • Mexican peso accelerates to the upside across the board. 
  • USD/MXN extends slide, drops almost 10% in three days. 

The Mexican peso is the best performer among the most traded currencies on Thursday, extending the rally. The improvement in risk sentiment helped emerging markets assets. In Wall Street, equity prices continue on rally mode for the third day in a row. 

“Stocks are firmly higher near mid-session Thursday as investors weigh fiscal stimulus plans against a record initial jobless claims figure. Last night, the Senate unanimously passed a $2 trillion spending package to help citizens and businesses deal with the economic fallout from the coronavirus outbreak. The bill now moves to the House for a final vote before heading to President Trump”, resumed Wells Fargo analysts. 

The USD/MXN trader earlier as high at 24.25 and recently printed a fresh one-week low at 22.95. As of writing, it trades at 23.10, down 3.45% for the day and off 10% from Tuesday’s peak. 

Mexican outlook

Before the coronavirus, the Mexican economy was showing negative signals. The global activity index dropped 0.7% in January from a year earlier. “We anticipate an economic contraction of 4.5% in 2020 with a strong downward bias if measures are not taken soon to curb the contagion. If the epidemic has not been controlled before the summer, the contraction will be even greater”, explained BBVA analysts. They warn that the degree of uncertainty in which these projections are made is much greater than normal. 

According to BBVA economist, there is a need to quickly ease and adjust monetary policy, especially considering its lagged effects and thus, the forward-looking nature of monetary policy decisions. “The depreciation of the MXN should not stop the Central Bank to ease monetary policy. In fact, Banxico is already behind the curve. Liquidity measures should be implemented soon in order to prevent further tightening in financial conditions.”

USD/MXN

Overview
Today last price 23.0947
Today Daily Change -0.8405
Today Daily Change % -3.51
Today daily open 23.9352
 
Trends
Daily SMA20 21.8203
Daily SMA50 19.9812
Daily SMA100 19.557
Daily SMA200 19.4689
 
Levels
Previous Daily High 24.9225
Previous Daily Low 23.8543
Previous Weekly High 24.6528
Previous Weekly Low 21.3655
Previous Monthly High 19.895
Previous Monthly Low 18.5151
Daily Fibonacci 38.2% 24.2624
Daily Fibonacci 61.8% 24.5144
Daily Pivot Point S1 23.5521
Daily Pivot Point S2 23.1691
Daily Pivot Point S3 22.4839
Daily Pivot Point R1 24.6203
Daily Pivot Point R2 25.3055
Daily Pivot Point R3 25.6885

 

 

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