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16 Jul 2015
USD/MXN approaches record highs and 16.00
FXStreet (Córdoba) - The Mexican peso is falling modestly on Thursday against the US dollar, currently trading at 1-week lows after dropping sharply on Wednesday. USD/MXN remains near record highs and moving toward 16.00.
USD/MXN rebounds
Last week the pair hit record highs at 15.865 and then tested the area several times but failed to break higher. Then stated a bearish correction and bottomed on Tuesday at 15.625, the lowest since June 30. But then jumped back to the upside, erasing all losses in a few hours.
Today extended the rally from 15.62 and peaked at 15.829. It was trading around 15.81, near record highs. A break of the 15.865 area could open the doors for further gains; if it consolidates above, a test of 16.00 would seems more likely.
A bad start for the oil reform
No economic data from Mexico was release during the last few days. The first oil field auction in Mexico was a disappointment as only 2 out of the 14 field received bids.
“Some believe that the main reason was that the government’s minimum investment requirements were too high given the pressure on oil prices. There are four more auctions, so the government still has plenty of opportunities to adjust. The Mexican bolsa shrugged off the news closing flat on the day, but the peso has underperformed”, wrote analysts from Brown Brothers Harriman.
USD/MXN rebounds
Last week the pair hit record highs at 15.865 and then tested the area several times but failed to break higher. Then stated a bearish correction and bottomed on Tuesday at 15.625, the lowest since June 30. But then jumped back to the upside, erasing all losses in a few hours.
Today extended the rally from 15.62 and peaked at 15.829. It was trading around 15.81, near record highs. A break of the 15.865 area could open the doors for further gains; if it consolidates above, a test of 16.00 would seems more likely.
A bad start for the oil reform
No economic data from Mexico was release during the last few days. The first oil field auction in Mexico was a disappointment as only 2 out of the 14 field received bids.
“Some believe that the main reason was that the government’s minimum investment requirements were too high given the pressure on oil prices. There are four more auctions, so the government still has plenty of opportunities to adjust. The Mexican bolsa shrugged off the news closing flat on the day, but the peso has underperformed”, wrote analysts from Brown Brothers Harriman.