- Mexican peso strengthens on Friday.
- USD/MXN accelerates the bearish correction below 20.40.
- US labor market with better than expected figures in June.
USD/MXN is falling for the second day in a row and is trading at 20.39, the lowest in three days. The dollar loses strength after the US employment data.
firmer mexican peso
Equity and commodity markets are advancing, setting a positive scenario for currencies like the Mexican peso, which is one of the best performers on Friday.
US employment data showed the economy added 372,000 jobs in June, beating expectations of 268,000. The unemployment rate remained at 3.6%. Although better than expected, the pace of job creation was the lowest since April 2021.
On Thursday it became known in Mexico that the annual rate of inflation it rose to 7.99% in June, the highest level in 21 years. The minutes of the last meeting of Banxico together with the inflation figure for June, they point to a rise of 75 basic points at the next meeting of the Governing Board.
The USD/MXN pullback
The drop below 20.45, if confirmed, would leave the Mexican peso with some strength and the way open to 20.30. Conversely, a return above that level will turn attention to the 20.70 resistance.
On Wednesday, USD/MXN traded above 20.70, reaching as high as 20.78, the highest level since March. But it failed to assert itself above the key 20.70 level, signaling a lack of strength and was then followed by the pullback. If there is a clear daily close above, the focus will shift to 20.90, where the next strong resistance lies.
Technical levels
Source: Fx Street
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