The Mexican peso rose across the board after President Trump inauguration speech. USD/MXN extended the decline and bottomed at 21.55, the lowest level since Wednesday.
Currently the pair trades at 21.63, down 1.32% for the day. It is still up marginally for the week but significantly off highs. Earlier today it approached 22.00 but then bounced to the downside.
Greenback dropped modestly after the inauguration. During his speech, Trump did not mention “the wall”, but he said that he will strengthen the borders.
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Overall market volatility has remained limited, with the Peso among the biggest movers. Despite today’s recovery, USD/MXN still remains sharply higher compared to the levels it had back in December.
A consolidation below 21.45 could open the doors from a more significant bearish correction while on the flip side, above 22.00, the rally could resume.
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