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Chart of the Day: USD/MXN

Published 07/22/2020, 05:24 PM
Updated 07/09/2023, 06:31 AM
USD/MXN
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US500
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SPY
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IXIC
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In an environment where the SPX continues to press higher towards all-time highs, and the NASDAQ Composite continues to brush new all-time highs, you would expect that an emerging market currency like the MXN would be stronger. With the continuous search for yield and Banxico's 5% higher rate that the FOMC, it is a surprise that the USD/MXNexchange rate is not lower. That has to be frustrating to USD/MXN shorts, which now are at risk on a move back above the 23.00 level. 22.7500 is the first level of resistance, but a clean break back above the 23.00 level could ignite a short squeeze higher. 
 

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