USD/MXN consolidates daily gains around 24.20 as US dollar gains strength versus EM FX

• US dollar rises on Thursday across the board, particularly against emerging market currencies. 
• USD/MXN above 24.00 and also the 20-day moving average. 

The USD/MXN pair ended with gains on Thursday after spending most of the day sideways around 24.15. It moved all American session in the 24.00/24.30 range, holding on to modest daily gains. 

During Thursday’s Asian session, USD/MXN gained momentum after the downgrade of Mexico’s credit rating by Fitch. It topped at 24.43, the highest level in a week and then pulled back, finding support above 24.00. 

The correction from the top was limited amid a stronger US dollar across the board. The worst performers were emerging market currencies, lead by the Colombian peso (USD/COP rose almost 2%). Concerns about the future economic outlook for developing countries weighed on market sentiment. 

Ahead of the Asian session, USD/MXN could continue to consolidate in the recent range. A break above 24.30 would reinforce the bullish bias while a slide under 23.95 should give impulse to the Mexican peso. The risk event will be Chinese data that includes Retail Sales, Industrial Production and first-quarter GDP.

Technical levels