- The Mexican peso remains firm against the dollar, at its highest since 2020.
- USD/MXN confirms below 19.00 and tests 18.80.
- Expectations of a softer Fed and better mood in the markets help the MXN.
USD/MXN is trading steady on Friday just below 18.85, at its lowest since February 2020, with the bearish tone intact and targeting support at 18.80.
The Mexican peso had its third consecutive daily gain on Thursday and went as high as 18.80. Said level is now the key support that, if it yields, would enable more falls. If it continues above, a consolidation could be expected between that level and 19.00/05.
The declines on Thursday were fueled by a weaker dollar, after US inflation data confirmed a slowdown in December. The annual rate went from 7.1% to 6.5%.
Mexican peso bankrupt and picks up pace
The Mexican peso is on track for its second significant weekly gain against the dollar. This time supported by a general weakness of the dollar and a better mood in the global equity markets. The weekly ranking is headed by the Russian ruble, followed by the Colombian peso and the Chilean peso.
The USD/MXN has ahead as next medium-term strong support barrier the 18.50 zone, where the 2020 lows are. If it falls below, the pair would reach the lowest level since July 2018.
The appreciation of the exchange rate in Mexico It is a factor that contributes to the drop in inflation, by making imported products and services cheaper.
USD/MXN week chart
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Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
