USD/MXN retreats after hitting levels on top of 20.00

Mexican peso recovers strength after a weak start..
USD/MXN traded above 20.00 for the first time in 14 months before retreating

Matías Salord FXStreet

The Mexican peso managed to erase daily losses after falling to the lowest level since February 2017 against the US Dollar. USD/MXN rose to 20.03 earlier today but it was rejected from above 20.00 and pulled back.

It continued to correct lower during the American session and recently printed a fresh daily low at 19.86. Higher crude oil prices, an improvement among Latin American currencies (excluding Venezuela) and less pessimism about a not too soon NAFTA deal, supported the recovery of the Mexican peso.

“Mexico reports mid-May CPI Thursday, which is expected to rise 4.4% y/y vs. 4.69% in mid-April. If so, inflation would still be above the 2-4% target range. Next Banxico meeting is June21 and much will depend on how the peso is trading ahead of July elections. April trade and Q1 current account data will be reported Friday”, explained analysts at BBH about upcoming events from Mexico. In the US the key event of the week will be FOMC minutes on Wednesday.

Technical levels

The area around 19.90/20.00 continues to be the key resistance. A daily close con top could open the doors to more gains with potential targets at 20.15 and 20.30.

On the flip side, while below 19.90 USD/MXN could correct further. Support levels area seen at 19.70 and 19.50/55.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.