USD/MXN retreats from 2019 highs, trades above 20.10

Banxico says economic deceleration has been bigger than anticipated.
US Dollar Index advances to 98.50 for first time since August 1.
Risk-on atmosphere helps EM currencies find demand on Thursday.

Eren Sengezer FXStreet

The USD/MXN pair advanced to its highest level since December at 20.2575 earlier today but reversed its course in the second half of the day to retrace its rally. As of writing, the pair was up only 0.18% on the day at 20,1325.

USD extends rally on Thursday

The broad-based USD strength today allowed the pair to post gains for the sixth straight trading day. The selling pressure surrounding the major European currencies and the lack of market interest to the traditional safe havens amid rising US Treasury bond yields ramped up the demand for the Greenback.

Moreover, the US Bureau of Economic Analysis in its second estimate said that the real gross domestic product in the US grew by 2% in the second quarter to match analysts' expectations. The US Dollar Index climbed to its highest level since August 1 at 98.55 in the last hour and was last up 0.3% on the day at 98.50.

In the meantime, in the minutes of its August meeting, the Central Bank of Mexico revealed that some board members thought that the economic deceleration has been bigger than anticipated. "All board members said the balance of risks for growth continues to be tilted downwards in the environment of marked uncertainty," the bank added.

Despite the USD strength and the Banxico's cautious tone, the USD/MXN pair pulled away from its highest as the upbeat market sentiment helped the risk-sensitive MXN stay show some resilience against the USD.

Technical levels to watch for

USD/MXN

Overview
Today last price	20.1313
Today Daily Change	0.0285
Today Daily Change %	0.14
Today daily open	20.1028

Trends
Daily SMA20	19.66
Daily SMA50	19.3101
Daily SMA100	19.2086
Daily SMA200	19.3344

Levels
Previous Daily High	20.1287
Previous Daily Low	19.9452
Previous Weekly High	19.9389
Previous Weekly Low	19.6075
Previous Monthly High	19.3628
Previous Monthly Low	18.8643
Daily Fibonacci 38.2%	20.0586
Daily Fibonacci 61.8%	20.0153
Daily Pivot Point S1	19.9891
Daily Pivot Point S2	19.8754
Daily Pivot Point S3	19.8056
Daily Pivot Point R1	20.1726
Daily Pivot Point R2	20.2424
Daily Pivot Point R3	20.3562

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.