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  • Mexican peso recovers versus US dollar, still among the worst performers in the market. 
  • USD/MXN drops to 23.93 but rebounds to 24.00.

The USD/MXN is rising again on Thursday but it moved off highs over the last hours. Earlier it climbed to 24.64, the new record high before making a correction. 

The pair dropped further following the announcement of new swap lines between the Federal Reserve and more central banks, including the Bank of Mexico. Also, the recovery in crude oil prices and in Wall Street is helping emerging market currencies. 

Still, the Mexican peso remains among the worst performers across the globe. Even as of writing, USD/MXN is up for the day. Mexican yields continue to slide and expectations about the economic performance of the country get worse day by day. 

USD/MXN forecast chart 

Volatility is set to hold at extreme levels over the next hours. A decline under 24.00 could point to an extension of the correction. The next support stands at 23.50 and below the 22.50/70 area (uptrend line) should limit the decline. USD/MXN is near the upper limit of a steep ascendant channel, suggesting more gains could face resistance between 24.50/70. If the pair break above 24.70, another leg higher to 25.00 and more, looks likely.