USD/MXN hits fresh record highs, closer to 20.00

USD/MXN  resumed the upside and printed new all-time highs after breaking above 19.70 and reached 19.87. Price remains near the highs and closer to 20.00.

The Mexican peso is again among the worst performers in the currency market, extending the losses for the current year.

The latest USD/MXN rally happened despite a rebound in crude oil prices and amid a lack of risk aversion. Analysts consider that the rally is taking place because of the “Trump effect”. Lately any improve of the odds in favor of the Presidential Republican candidate is being followed by a sell-off in the Mexican currency.

To the upside, the next key resistance is the psychological barrier or 20.00. A break above could trigger speculation about an intervention from the Bank of Mexico, to curb the depreciation.