Mexican Peso recovers after Finance Minister calms markets

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The Mexican Peso (MXN) recovers by more than one percent in its most traded pairs on Wednesday, after the Mexican Finance Minister, Rogelio Ramírez de la O, steps in to prevent a further depreciation of the Peso following the 5.0% election-related decline on Monday and Tuesday.

The Mexican Peso recovers on Wednesday after the Mexican Finance Minister gives an interview seeking to calm investor fears. Rogelio Ramírez de la O says the newly elected government will exercise fiscal discipline and encourage investment. USD/MXN pulls back after becoming overbought and touching a major Moving Average in the weekly timeframe, but bulls still dominate.

USD/MXN is overbought according to the Relative Strength Index , and this increases the chances of a deeper correction unfolding. Given the dominance of the bullish trend, however, the pair is expected to recover and continue pushing higher. However, there are no signs yet that the pullback has ended, suggesting more downside could come before the pair finds its feet. One possible level where the pullback could find support is at 17.

 

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