- Mexican peso tumbles more than 2% against US dollar, worst performer of the day.
- USD/MXN off highs but still with significant bullish pressure.
- Vote on new airport in Mexico City hits MXN. President-elect Andrés Manuel López Obrador press conference expected.
The Mexican peso tumbled on Monday following a referendum pushed by President-elect Andrés Manuel López Obrador regarding the new airport, already under construction. The results of the “public consultation” were against the new airport.
The vote isn’t legally binding, but AMLO said he would abide by the results. He is expected to deliver a press conference today. The cancellation of the airport under construction could have a large impact on investors confidence, warned many analysts. The President-elect will take office December 1 and if he cancels the project, significant financial implications are likely.
USD/MXN could test 20.00
The sharp depreciation of the Mexican peso boosted USD/MXN to 19.83, the highest level since July. From the top pulled back modestly and as of writing was trading at 19.70, up more than 2% for the day. On Friday, the pair tested 19.30.
Despite moving off highs during the last hour, the bullish pressure remains intact. A consolidation on top of 19.60/65 would leave the doors open to further gains and a potential test of the next strong barrier seen at 19.95/20.00. On the downside, immediate support could be located at 19.60/65, followed by 19.45 and 19.20 (horizontal level and 20-day moving average).
Share
