The Mexican Peso is now giving some signs of life after plummeting to fresh historical lows vs. the buck, with USD/MXN now hovering over the 20.00 handle.
USD/MXN stronger on Trump
After climbing as highs as the vicinity of 20.80 in early trade, the pair has now receded to the 20.00 region, although the Mexican currency remains far away from attempting some durable recovery after Donald Trump became the next US President.
MXN depreciated further in response to Trump’s victory in the US elections today, as market participants expect the Peso to remain under heavy pressure in light of the potential measures by the new government regarding trade and immigration, centre of the debate between the US and Mexico during Trump’s presidential campaign.
USD/MXN levels to watch
At the moment the pair is advancing 8.70% at 19.9167 facing the next resistance at 20.7801 (all-time highs Nov.9). On the other hand, a break below 18.1593 (low Nov.9) would expose 17.8927 (low Aug.16) and finally 17.0407 (low Apr.29).
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