USD/MXN tumbles to lowest in almost two weeks; Mexican peso soars

• Mexican peso among the top performers on Thursday amid risk appetite. 
• USD/MXN opened the week at record highs near 26.00; it just bottomed at 23.31. 

The USD/MXN pair was falling on Thursday, and it accelerated to the downside after the latest announcement from the Federal Reserve. It bottomed at 23.31, the lowest level since March 27. From the lows, it bounced modestly, and it was trading at 23.55, down 1.85% for the day. 

The Mexican peso so far was the biggest gainer among the most traded emerging market currencies on Thursday. The Turkish lira and the Russian ruble were also outperforming. The improvement in market sentiment favoured the demand for riskier assets. 

The new facilities announced by the Federal Reserve to provide $2.3 trillion in loans to small businesses and municipalities boosted equity prices and sent the US dollar to the downside. The greenback is even down against the Japanese yen that usually falls on risk appetite. 

Technical levels

The decline of USD/MXN was capped by the 23.30/40 support area. A break lower should target 23.00 and below the next support might be seen at 22.80/85. On the upside, now 23.80 is the immediate resistance, followed by 24.25.