USD/MXN breaks below 19.50 on the back of a stronger Mexican peso

• Mexican peso’s rally remains firm on the back of AMLO’s comments, crude oil and EM rally. 
• USD/MXN breaks below 19.50 and slides further to lowest since mid-May,

The Mexican peso rose today to a fresh 7-week high against the US dollar and continues to be among the top performers. Andrés Manuel López Obrador, president-elect continues to offer positive signals for financial markets about his economic plans and also regarding NAFTA talks. 

USD/MXN suffered yesterday the worst slide in two years. The pair dropped from 19.96 to 19.45 and today extended the slide to 19.39, reaching the lowest intraday level since May 14. 

The Mexican peso rally was driven by AMLO’s comments about NAFTA and fiscal discipline. Also the rally in crude oil prices and also in global emerging markets. 

As of writing, USD/MXN was trading at 19.42, down almost 4% in a week, headed toward the lowest close in 50 days. 

USD/MXN Technical levels 

To the downside, support levels might be seen at 19.40, 19.30 and 19.15. On the upside, resistance could be located at 19.60, 19.85 and 20.20/25 (20-day moving average).