USD/MXN jumps to 20.75 as market sentiment deteriorates

  • The rally of the US dollar continues on Friday, DXY breaks above 92.00.
  • USD/MXN heads for the highest weekly close since February.

The Mexican peso remains under pressure against the US dollar. The USD/MXN jumped to 20.75, reaching the highest level since late March. The pair is hovering around 20.65, holding onto gains.

The dollar is rising for the sixth consecutive day versus the Mexican peso amid a deterioration in market sentiment after the FOMC meeting. The peso is among the worst performers of the current week, together with the South African rand and the Turkish lira. The USD/MXN has risen more than 4% on the biggest weekly gain since September of last years.

Banxico next week but…

Next Thursday, the Bank of Mexico will announce its decision on monetary policy. No change in the key rate is expected (4%) but the usual hawkish bias will likely be reinforced after the recent spike in volatility across financial market, the depreciation of the Mexican peso, and global higher yields, in the context of higher inflation in Mexico.

Despite the meeting, price action of emerging market currencies will likely be decided by the US dollar and the risk tone. The market has clearly made a shift in favor of broad-based strength of the greenback.

Technical levels



Today last price 20.7461
Today Daily Change 0.3146
Today Daily Change % 1.54
Today daily open 20.4315
Daily SMA20 19.9542
Daily SMA50 19.9787
Daily SMA100 20.244
Daily SMA200 20.4054
Previous Daily High 20.6232
Previous Daily Low 20.3269
Previous Weekly High 20.0023
Previous Weekly Low 19.5983
Previous Monthly High 20.3286
Previous Monthly Low 19.7191
Daily Fibonacci 38.2% 20.51
Daily Fibonacci 61.8% 20.4401
Daily Pivot Point S1 20.2979
Daily Pivot Point S2 20.1643
Daily Pivot Point S3 20.0016
Daily Pivot Point R1 20.5941
Daily Pivot Point R2 20.7568
Daily Pivot Point R3 20.8904



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