18 Aug 2015
USD/MXN retreats but remains near 16.50
FXStreet (Córdoba) - The Mexican peso was able to erase losses against the US dollar and is about to end the day slightly higher but still remains near record lows.
USD/MXN climbed yesterday to 16.475 and posted the highest daily close ever at 16.43. Today it found resistance at 16.46 and then, during the American session, lost momentum and retreated. Recently printed a fresh daily low at 16.38 and currently is hovering around 16.40.
MXN outlook
The pair is likely to find resistance around 16.50 if tested. According to Ilan Solot, Emerging Markets Analyst at Brown Brother Harriman expects the Mexican peso to begin performing better in relative terms. “The Mexican peso fell over 20% against the dollar over the last 12 months. This puts the currency in the middle of the pack between its Latin America peers, but considerably worse than most other EM currencies. Many of the negatives have already been priced in, and officials have turned very vigilant towards FX volatility.”
USD/MXN climbed yesterday to 16.475 and posted the highest daily close ever at 16.43. Today it found resistance at 16.46 and then, during the American session, lost momentum and retreated. Recently printed a fresh daily low at 16.38 and currently is hovering around 16.40.
MXN outlook
The pair is likely to find resistance around 16.50 if tested. According to Ilan Solot, Emerging Markets Analyst at Brown Brother Harriman expects the Mexican peso to begin performing better in relative terms. “The Mexican peso fell over 20% against the dollar over the last 12 months. This puts the currency in the middle of the pack between its Latin America peers, but considerably worse than most other EM currencies. Many of the negatives have already been priced in, and officials have turned very vigilant towards FX volatility.”