USDMXN: Peso regains poise as S&P 500 futures rise

MXN picks up a bid as the US stock futures signal risk reset.
Mexico's decision to reopen the economy is likely adding to upward pressure around the Peso.

Omkar Godbole FXStreet Contributor

The USD/MXN is feeling the pull of gravity for the third straight day with the Peso drawing bids amid signs of risk reset in the US stock futures.

The currency pair is currently trading at 23.61, representing a 0.24% decline on the day. The bounce from Tuesday's low of 23.4467 ran out of steam at 23.75 during the early Asian trading hours.

MXN's strength could be associated with the 0.5% rise in the S&P 500 futures. Essentially, futures are indicating that Wall Street could reverse or at least regain a part of the losses seen on Tuesday. Stocks fell on Tuesday, boosting demand for the safe-haven dollar after scientists raised questions over the positive test results of the US-based Moderna's coronavirus vaccine.

Apart from the uptick in the stock futures, MXN seems to be benefitting from the optimism surrounding the reopening of its economy. Mexico issued guidelines on Monday for restarting operations in the automotive, mining and construction sectors, despite the rising death toll from the coronavirus pandemic.

Looking forward, the Mexican peso could continue to track the optimistic turn in market sentiment. Also, action in oil prices could influence the MXN. At press time, the West Texas Intermediate crude's front-month contract is trading 0.16% lower on the day at $31.90 per barrel.

The black gold has rallied by over 200% since bottoming out below $10 last month. Hence, a chart-driven pullback cannot be ruled out. That may weigh over MXN.

Technical levels

1. R3 24.1659
2. R2 23.986
3. R1 23.8105
PP 23.6306
1. S1 23.4551
2. S2 23.2752
3. S3 23.0997

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD stays near 1.1650 with fading momentum

EUR/USD holds ground after five days of losses, trading around 1.1650 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 39 trends lower, confirming fading momentum rather than oversold conditions.

GBP/USD remains below 1.3450, nine-day EMA

GBP/USD remains subdued for the fourth consecutive day, trading around 1.3430 during the Asian hours on Friday. The momentum indicator 14-day Relative Strength Index at 51.9 is neutral, reflecting slower momentum after firm recent readings. An RSI drop back beneath 50 would strengthen the case for a deeper pullback.

Gold edges lower as USD preserves its recent gains ahead of US NFP report

Gold struggles to capitalize on the previous day's goodish rebound from the vicinity of the $4,400 mark and attracts fresh sellers during the Asian session on Friday. The US Dollar preserves its gains registered over the past two weeks and touches a nearly one-month high, undermining the commodity.

Bitcoin, Ethereum and Ripple find key support, reviving rally hopes

Bitcoin, Ethereum, and Ripple steadied above key support levels on Friday after being rejected at mid-week resistance zones. The short-term recovery prospects remain intact if the top three cryptocurrencies by market capitalization hold these support zones.

2026 economic outlook: Clear skies but don’t unfasten your seatbelts yet

Most years fade into the background as soon as a new one starts. Not 2025: a year of epochal shifts, in which the macroeconomy was the dog that did not bark. What to expect in 2026? The shocks of 2025 will not be undone, but neither will they be repeated.

Pepe Price Forecast: PEPE risks 100-day EMA fallout as bullish interest fades

Pepe is under extreme selling pressure, trading in the red for the fifth consecutive day, down 1% at press time on Friday. Pepe’s decline following a 72% hike last week suggests a likely profit-booking phase, while on-chain data indicates declining network activity.