- The decline from last week's high of 19.55 in USD/MXN finds support above 19.30.
- Mexico: Technical recession took place during the first half of the year.
The USD/MXN pair jumped today from near 19.30 to 19.48. Then it pulled back and near the end of the American session trades at 19.45, up ten cents for the day ending a bearish correction from 19.55.
The pair moved higher on a mixed day for the US dollar and also for Latin American currencies. The Mexican peso was affected by uncertainties surrounding the ratification by the US Congress of the US-Mexico-Canada trade deal. Growth data from Mexico did not help MXN.
Mexico: Mild recession
Data released today from the Mexican statistics institute offered revised numbers to growth data during the first half of 2019. According to the new figures, the economy suffered a mild recession and during the third quarter showed a marginal positive growth rate.
During the first and second quarters, it contracted by 0.1% (QoQ) while it rebounded by expanding less than 0.1% in the period from July to September. Beyond the recession and the recovery, the Mexican economy shows practically no growth so far in 2019. Those numbers support further rate cuts from the Bank of Mexico.
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