- Mexican peso fails to hold to gains despite the rally in stocks.
- USD/MXN back to the range after being rejected from under 19.10.
The USD/MXN bounced back to 19.15 from the weekly lows, erasing daily losses. The Mexican peso weakened across the board during the American session despite risk appetite and rising crude oil prices.
“Stocks rallied globally while bond yields declined drastically driven by unexpectedly dovish comments from ECB officials supporting market’s expectations for easier monetary policies from both the ECB and the Fed and slight relief on US-China trade frictions,” wrote BBVA analysts. The improvement in sentiment boosted Latin American currencies. Among them was the Mexican peso but it changed its trend.
The pair bottomed at 19.04, the lowest levels in almost three weeks and rebounded. As of writing trades at 19.15, marginally lower for the day and back into the range between 19.10 and 19.20 that has been in place since last Tuesday.
The Mexican peso today pushed USD/MXN below the lower bottom, but it was rejected, and the pair rose back above. Last week and yesterday, it traded on top of 19.20 for a few moments, but it was unable to hold on top.
The pair continues to move sideways around 19.15, consolidating the slide that followed the sharp decline on the back of Trump’s announcement of no tariffs to Mexican imports.