- Mexican peso among worst performers on Monday, still the top of last 30 days.
- USD/MXN rebounds from 18.90 and rises back above 19.00.
The Mexican peso is falling against the US Dollar on Monday, following a 2-day rally. The USD/MXN found support at 18.90 and rose back above 19.00 and also on top of the 20-day moving average.
A weaker Mexican peso boosted the pair on Monday, potentially hit by concerns about the trade deal between US, Mexican and Canada. Today, Senator Charles Grassley, a Republican, sent an ultimatum to President Trump, saying either he cancels tariffs or the new deal won’t get through Congress. Also, the House Speaker Nancy Pelosi, a Democrat signaled they won’t allow a vote on the new deal without changes.
Regarding the US dollar, it is posting mix results across the board. Data released today showed an increase in personal spending during March while inflation indicators came in below expectations. Mexican GDP data is due tomorrow while on Wednesday the Federal Reserve will announce its decision on monetary policy.
Levels to watch
The pair is trading slightly above the 19.00 level that a few minutes ago was a resistance area. If it manages to remain on top it could gain momentum to rise for another test to the 19.20 zone, below that level an intermediate resistance might lie at 19.10.
On the flip side, a decline back under 19.00, would suggest more consolidation ahead between 18.90 and 19.00. Below the strong support of 18.90, the next target is located at 18.80 and below attention would turn to the 2019 low at 18.73.
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