USDMXN retreated after making fresh all-time as the crude oil price drops over 5% at 2685. Mexico’s President Andres Manuel Lopez Obrador announced that his government would roll out a relief package to fight the coronavirus economic impact of but also warned that the stimulus plan would call for massive borrowing.
BANXICO cut the overnight interbank interest rate by 50 bps to 6.5% in the latest policy meeting. Many analysts have increased bets that the central bank will proceed with an emergency rate cut before the next policy meeting in May.
USD continue to ignore the dismal economic data reported last week in the USA. The US weekly jobless claims rose to 6.6 million a record high, well above the expectations of 3.1 million.
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USDMXN Technical Analysis
USDMXN is 0.71% lower at 24.826 at the daily lows as the pair pullback sharply after making fresh all-time highs during the Asian trading session. The technical outlook for the pair remains bullish for the pair despite today’s sharp correction.
On the downside, initial support for the USDMXN pair will be met at 24,8177 today’s low. The next support for USDMXN stands at 24.2069 the low from Friday’s session. More bids might emerge at 23.7687 the low from April 2.
On the upside, initial resistance will be met at 25.7811 the daily high. A credible move above will drive the pair in unchartered territory, and the next resistance stands at 26.0000 psychological mark.
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