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Market News Topics
May 27, 2022 15:06 GMT
USD/MXN Touches Fresh Multi-Month Lows
MEXICO
- Outperformance of Latam currencies extending so far Friday, with COP, CLP and BRL all printing the best levels of May against the USD. The real standout is MXN, with USD/MXN's 19.55 print today the lowest since January 2021.
- Greenback weakness the main driver so far this week, with the USD Index narrowing in on the key 50-dma support at 101.32 - but solid oil prices also contributing for Mexico specifically.
- Recall AMLO's plans a few months ago to curb oil exports from Mexico had been countered by reports earlier in May that Mexico are likely to extend their giant oil hedge (seen at around $1bln) into 2023, according to sources cited by Bloomberg.
- The extension of the hedge would lock-in multi-decade high oil prices across the next 12 months, providing a considerable boon for Mexican government coffers.
- USDMXN has now pushed through key support at 19.7274, the Apr 4 low, marking an important technical break and confirming a resumption of a bear cycle that started on Nov 26 last year. The move lower opens volatility-based support crossing at the 2.0% 10-dma envelope of 19.472
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
To read the full story
Close
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.
Sign up now for free trial access to this content.
Please enter your details below.
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.
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