USD/MXN slumps to lows near 18.60

The Mexican peso is by far the largest beneficiary of today’s FBI-Clinton news, now prompting USD/MXN to drop more than 2% to the 18.60 area.

USD/MXN in 2-week lows

The pair has quickly sunk to fresh 2-week lows following the FBI’s confirmation on Sunday that Democratic candidate H.Clinton will not face criminal charges over the emails scandal.

The news triggered a strong buying interest around MXN, which managed to send spot to multi-day lows in the 18.60 region as market participants now perceive that H.Clinton could win the presidential elections on Tuesday.

Currently, most election polls are seeing H.Clinton up by 3-4 pts vs. D.Trump, although opinions on the final outcome remain very divided.

On the data front, the Fed’s Labor Market Conditions Index came at 0.7 from -0.1 after October’s Non-farm Payrolls have missed forecasts at 161K.

In Mexico, October’s inflation figures are due on Wednesday ahead of Industrial Production results for the month of September expected on Friday.

USD/MXN levels to watch

At the moment the pair is retreating 2.19% at 18.6216 and a break below 18.5306 (6-month support line) would expose 18.3934 (200-day sma) and finally 18.2480 (low Sep.6). On the upside, the initial hurdle lines up at 18.8217 (20-day sma) followed by 18.9946 (55-day sma) and then 19.5500 (high Nov.3).