USD/MXN hits weekly highs on top of 19.50
- USD/MXN holds bullish bias, ahead for the highest close in a month.
- Greenback rises versus Latin American and other emerging market currencies.
The Mexican peso is falling against the US dollar for the second day in a row. The greenback remains strong versus most of the Emerging market currencies, particularly from Latin America. The Brazilian real reached record lows earlier today.
Testing levels on top of 19.50
The USD/MXN rose from near 19.40 and climbed to 19.54, reaching the highest level since last Wednesday. Price is above the 19.50 resistance area and a daily close on top would signal more gains ahead and would be the highest in a month. The next strong resistance is seen at 19.64.
The bullish bias is likely to remain intact as long as price holds above 19.30, a horizontal support and also where the 20-day moving average stands.
No growth and Latam
The critical political and social situation in many Latin American countries and the poor economic performance from Argentina to Mexico weighed on local markets. The Mexican economy suffered a recession during the first half of the year and it practically stagnated in the third quarter. Lower inflation keeps the road clear to more rate cuts from Banxico.
At the moment, only a sharp depreciation of the Mexican peso could change the rate outlook toward more easing. On Thursday, the minutes of the latest Banxico meeting will be released.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
