USD/MXN: Mexican peso tumbles after AMLO presents new nomination to central bank governor


  • President Lopez Obrador nominates Victoria Rodríguez to head the central bank.
  • Mexican peso tumbles across the board after the announcement.
  • Inflation in Mexico surpasses 7% to levels not seen in 20 years.

The Mexican peso is falling sharply against its main rivals on Wednesday, affected by the news regarding the nomination for the next head of the Bank of Mexico. The USD/MXN is rising almost 2%, trading near 21.60, the highest level since March.

As of writing, USD/MXN trades at 21.53. It peaked at 21.61, and a daily close around current levels would be the highest since October of 2020. The pair is testing the 2021 top it established back in March at 21.62.

Nomination changes at Banxico and higher than expected inflation

Mexican President Andres Manuel Lopez Obrador withdrew his nomination of former finance minister Arturo Herrera for governor of the central bank to replace current head, Alejandro Díaz de León. Lopez Obrador did not want Díaz de Leon to continue at the post and nominated Herrera back in June, leaving his post at the government a few weeks later.

On Wednesday, Lopez Obrador nominated Victoria Rodríguez Ceja. She holds a job at the Finance secretary and, if confirmed by the Senate, would be the first-ever female to lead Banxico.

The announcement came after data showed inflation accelerated during the first half of November (headline and core) surpassing expectations. The annual rate reached 7.05%, the highest level since April 2001. Banxico rose interest rates at the last meeting for the fourth consecutive time to 5% in order to curb inflation. Wednesday’s inflation figures warrant that more hikes are on the way.

At the same time, the US dollar remains strong in the market, boosted by recent economic data and higher yields. The rally of the greenback adds more fuel to the USD/MXN.

Technical levels

USD/MXN

Overview
Today last price 21.5379
Today Daily Change 0.3413
Today Daily Change % 1.61
Today daily open 21.1966
 
Trends
Daily SMA20 20.6315
Daily SMA50 20.4549
Daily SMA100 20.2339
Daily SMA200 20.2319
 
Levels
Previous Daily High 21.3097
Previous Daily Low 20.9858
Previous Weekly High 20.89
Previous Weekly Low 20.4702
Previous Monthly High 20.9034
Previous Monthly Low 20.1193
Daily Fibonacci 38.2% 21.186
Daily Fibonacci 61.8% 21.1096
Daily Pivot Point S1 21.0184
Daily Pivot Point S2 20.8402
Daily Pivot Point S3 20.6946
Daily Pivot Point R1 21.3423
Daily Pivot Point R2 21.4879
Daily Pivot Point R3 21.6661

 

 

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

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD climbs above 1.1250 as investors eye coronavirus headlines

EUR/USD preserved its recovery momentum early Friday and rose above 1.1250 during the European trading hours. Markets are doubting the Fed's policy tightening prospects as the new coronavirus variant revives concerns over the economic recovery losing steam.

EUR/USD News

GBP/USD rebounds toward mid-1.3300s on broad dollar weakness

GBP/USD reversed its direction after dipping below 1.3300 earlier in the day and started to push higher toward 1.3350. The greenback is facing heavy selling pressure amid the sharp decline witnessed in the 10-year US Treasury bond yield.

GBP/USD News

Gold clings to strong gains above $1,800 as US T-bond yields plunge Premium

Gold staged a decisive rebound on Friday and reclaimed $1,800. The intense flight to safety is causing US Treasury bond yields to fall sharply and fueling XAU/USD's rally. Investors await news on vaccines' effectiveness against the new COVID variant.

Gold News

Cardano could tank to $1 if ADA fails to defend crucial support

Cardano price is currently hovering below a freshly shattered 6-hour demand zone, ranging from $1.68 to $1.79. This resulting crash could extend to the immediate and critical foothold at $1.40. 

Read more

Black Friday 2021 Discounts!

Do you want to take your trading skills to the next level? Now you have a chance of leaping forward at attractive introductory rates. For Black Friday, FXStreet is offering discounts of up to 50% on its upgraded Premium plans. 

Subscribe now!

Forex MAJORS

Cryptocurrencies

Signatures