Home USD/MXN consolidates daily gains around 24.20 as US dollar gains strength versus EM FX
FXStreet News

USD/MXN consolidates daily gains around 24.20 as US dollar gains strength versus EM FX

  • US dollar rises on Thursday across the board, particularly against emerging market currencies. 
  • USD/MXN above 24.00 and also the 20-day moving average. 

The USD/MXN pair ended with gains on Thursday after spending most of the day sideways around 24.15. It moved all American session in the 24.00/24.30 range, holding on to modest daily gains. 

During Thursday’s Asian session, USD/MXN gained momentum after the downgrade of Mexico’s credit rating by Fitch. It topped at 24.43, the highest level in a week and then pulled back, finding support above 24.00. 

The correction from the top was limited amid a stronger US dollar across the board. The worst performers were emerging market currencies, lead by the Colombian peso (USD/COP rose almost 2%). Concerns about the future economic outlook for developing countries weighed on market sentiment. 

Ahead of the Asian session, USD/MXN could continue to consolidate in the recent range. A break above 24.30 would reinforce the bullish bias while a slide under 23.95 should give impulse to the Mexican peso. The risk event will be Chinese data that includes Retail Sales, Industrial Production and first-quarter GDP.

Technical levels 

 

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.