- Mexican peso continues with a bias in favor and presses over 21.00.
- Weakness of the dollar in the market favors a bearish continuity of USD / MXN.
USD / MXN is falling for the second day in a row and it just hit a one-month low at 20.98, although it quickly returned above 21.00. The price is around 21.05, still with a dominant bearish tone and pressing on a key area.
The price of the cross is testing the 21.00 zone that protects the September lows that are at 20.83 and is the next major support. In the opposite direction at 21.20 is the first resistance zone followed by 21.55 (horizontal and 20-day average level). A rally above the latter would cast doubt on the current bearish bias.
From the fundamental point of view, the general weakness of the dollar is the key drag factor on Wednesday. The greenback is under pressure on all fronts. In the US, the focus is on the presidential elections and talks for more fiscal stimulus.
In Mexico Inflation data will be released on Thursday and retail sales on Friday. These will surely be analyzed in the Banxico Governing Board. November 12 will be the next meeting of Banco de México. The forecasts are divided between those who expect a new cut, from 25 basis points to 4% and others who do not see changes.
Credits: Forex Street
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
