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USDMXN Through Recent Highs Following US Trade Complaint Report

MXN
  • USDMXN has broken through recent highs around the 17.1880 region and is now at its highest level since last Tuesday.
  • The pullback in the peso may come as part of a delayed reaction to the earlier news that crossed in early European hours; that the US is preparing to accelerate its complaint that Mexico’s ban on genetically modified corn violates the nations’ free-trade deal, heightening tensions between the neighbours. The recent uptick in the greenback through the European open is likely providing an additional tailwind to the pair.
  • USDMXN currently sits above the 50-day EMA, which intersects today at 17.1337, though a more sustained move higher toward 17.3959, the Jul 7 high, is needed to signal a stronger recovery.

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