USD/MXN: Trump gains, Peso drops to lowest since Oct 6

The Mexican peso is falling sharply across the board weakened after some polls showed Donald Trump ahead of Hillary Clinton, one week before the presidential election. USD/MXN is up 1.35% today and more than 3.5% from the level it had a week ago. 

The pair is trading at 19.14, the highest level since October 6 and holds a strong bullish tone. The Mexican currency is also affected by a decline in crude oil prices and by risk aversion. Volatility in the Peso is likely to remain high ahead of tomorrow’s FOMC decision and closer to US elections. 

In Wall Street, the Dow Jones is testing the 18,050 area, down 0.42% while the S&P 500 losses 0.55%.  Other emerging market currencies are falling against the US dollar. In Brazil, Greenback is at the highest in almost a month. 

USD/MXN levels 

To the upside, resistance levels might be seen at 19.20, 19.37/40 (Oct 5 & 7 high) and 19.50 ( Sep 22 low). On the flip side, immediate support could be located at 19.10 (Oct 28 high), 18.87 (Oct 27 high) and 18.77/78 (Oct 31, Nov 1 low).