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MARKETS ANALYSIS: MXN Weakness Puts Currency in Close Proximity to Key Levels
Recent underperformance in the Mexican Peso has put the currency in close proximity to a number of key levels in the crosses.
Below MXNJPY appears to have sold off from firm resistance around 5.30 and is currently breaking down through 5.0836. Further weakness could prompt a test below 5.00 and increase the momentum of the move.
EURMXN has also broken through the psychological 25.00 level and is rapidly approaching major downtrend resistance around 25.30. This level should actually tie in fairly closely with 20.85 in USDMXN which was the previous breakdown from late last year.
Figure 1: MXN/JPY, EUR/MXN nearing key levels
Source: MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.