FXStreet (Córdoba) – USD/MXN is rising modestly on Monday but is still headed toward the highest close ever. The pair peaked at 16.475 and turned to the downside, just slightly below all-time highs.
Price decline after the beginning of the American session and reached levels under 16.40 but currently is trading around 16.41. It resumed the upside, after making a modest bearish correction on Friday.
MXN: What’s ahead?
The trend continues to favor the US dollar against the Mexican peso and all Latin-American currencies. USD/MNX is facing resistance around 16.50 while the 16.00 handle is offering support.
During the week Mexico will release second quarter GDP data on Thursday and is expected to fall to 2.1% y/y, from 2.5% in the previous quarter according to Ilan Solot, Emerging Markets Currency Strategist, at Brown Brothers Harriman. “This would be roughly around the level of growth over the last few quarters. Despite the increased vigilance by the central bank towards the start of the Fed hiking cycle and the weakness of the peso, we doubt that this number will do much to change the outlook. We think the bank will stay put for the time being.”
(Market News Provided by FXstreet)