• Emerging market currencies extend weekly losses on Friday.
  • US dollar firm on risk aversion, DXY up 0.65%.
  • USD/MXN testing critical resistance that contains the 100-week SMA.

The US dollar is rising against emerging market currencies on Friday, extending weekly gains boosted by global concerns about the growth outlook and as central banks raise interest rates. The Mexican peso is among the worst performers.

The USD/MXN jumped on Friday to 20.46, reaching the highest level in two weeks. It then pulled back to the 20.30 level. High volatility is likely to remain elevated as panic continues to drive price action.

After a brief pause, USD/MXN resumed the upside on Friday, adding to weekly gains. It started to move higher from 20.05 (20-day SMA). The rally found resistance at the 20.45 strong barrier that contains the 100-week SMA. A consolidation above should point to more gains. The next strong resistance is located at 20.70.

Fear almost everywhere

In Wall Street, the main indexes are in red but off lows. Bond yields are sharply lower, reflecting risk aversion and softer expectations about monetary tightening. Economic data from the US showed a larger than expected decline in ISM Manufacturing in June that fueled recession fears.

Despite the slowdown in activity, high inflation pressures the Fed and other central banks to tighten aggressively monetary policy. Higher rates are usually negative for emerging markets.

USD/MXN weekly chart

USDMXN

USD/MXN

Overview
Today last price 20.3736
Today Daily Change 0.2677
Today Daily Change % 1.33
Today daily open 20.1059
 
Trends
Daily SMA20 20.0323
Daily SMA50 20.0514
Daily SMA100 20.19
Daily SMA200 20.4264
 
Levels
Previous Daily High 20.2657
Previous Daily Low 20.0616
Previous Weekly High 20.3786
Previous Weekly Low 19.826
Previous Monthly High 20.7028
Previous Monthly Low 19.4709
Daily Fibonacci 38.2% 20.1396
Daily Fibonacci 61.8% 20.1877
Daily Pivot Point S1 20.0231
Daily Pivot Point S2 19.9403
Daily Pivot Point S3 19.819
Daily Pivot Point R1 20.2272
Daily Pivot Point R2 20.3485
Daily Pivot Point R3 20.4313

 

 

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.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD falls through 1.0100 amid renewed dollar strength

EUR/USD came under heavy bearish pressure, now trading below the 1.0100 level and at its lowest for this month. Although the data from the US showed that Existing Home Sales fell sharply in July, the economy seems resilient to global woes.

EUR/USD News

GBP/USD slumps to multi-week lows below 1.2000

GBP/USD slumps to multi-week lows below 1.2000

GBP/USD extended its daily slide and touched its weakest level since late July below 1.1970. The broad-based dollar strength, as reflected by a more than 0.5% increase in the US Dollar Index, forces the pair to continue to stretch lower in the American session.

GBP/USD News

Gold bearish breakout underway

Gold bearish breakout underway

Gold is losing ground for a fourth consecutive day, trading at fresh weekly lows. The metal suffers from renewed dollar strength, as US data suggest the economy remains resilient to the latest global woes, leaving room for the Fed to maintain its aggressive stance.

Gold News

Why XTZ traders need to be glued to the screen for next 48 hours

Why XTZ traders need to be glued to the screen for next 48 hours

Tezos price will likely take a key turn lower today after the bullish print on Wednesday. XTZ price is at the mercy of global markets rolling over this morning. Either the technical support handles hold – or break under dollar pressure.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures