The Mexican Peso is the outperformer today after President Donald Trump has announced via Twitter that the United States has reached a “signed agreement” with Mexico and the threat of tariffs have been suspended indefinitely. Also supporting the momentum could be Friday’s disappointing employment data from the US that strengthened calls for the Fed rate cut.
The pair today managed to break below the 150 and 20 day moving average and now trades at 19.1660 making the daily low at 19.1367 where it tested the 100 day moving average and managed to rebound at 19.1616. The picture is bullish for peso and now that the tariffs issue has resolved the pair might go back where all the rumors about the tariffs started around 18.90 zone back in May. Immediate support for the pair stands at 19.09 the 50 day moving average while more solid buying will emerge at previous monthly low down to 1.1901. On the upside first resistance stands at the 20 day Moving Average at 1.1926 while extra offers will emerge at the 1.1941 mark where the 150 day moving average crosses.