The peso appreciated for the fourth consecutive day and reached its best level in more than a month, which opens the possibility that the currency will fall to 19.80 per dollar.
The exchange rate ended at a level of 19.8873 pesos per dollar with an appreciation of 0.21%, which was enough to record its best level against the US currency since September 12, according to data from the Bank of Mexico (Banxico).
“The scenario for the peso is positive as long as it remains below 19.95 units. The weakness of the US dollar in general is influencing the appreciation of the peso. Until now, it has bottomed out at 19.86 pesos, the lowest level in a month “, OctaFX analysts indicated.
The specialists pointed out that the critical support is at 19.80 units per dollar. Some rebound from this level could be seen, but in the event of a close below, the key level of 19.50 units (intermediate support at 19.70) would be exposed.
In an adverse case, a recovery above 19.90 would point to a consolidation between 20.15 and 19.95 pesos.
Among the main dollar crosses, the most appreciated currencies were the Chilean peso with 2.32%, the British pound with 1.76%, the Swedish krona with 1.75%, the Polish zloty with 1.35% and the Australian dollar with 1.30%. Among relevant currencies, the euro appreciated 0.95%, trading at 0.9968 dollars per euro, while the Japanese yen appreciated 0.68%, trading at 147.90 yen per dollar.
“Part of the downward correction of the dollar and interest rates is due to the fact that in the United States the FHFA index of home prices contracted in August at a monthly rate of 0.7%, spinning two months of falls. In its comparison annual, the price index shows an increase of 11.9%. The lower housing prices as of July, may be due to the effect of the increases in the interest rate of the Federal Reserve on the demand for mortgage loans”, said Gabriela Siller , director of economic analysis at Banco Base.
In the short term, the exchange rate is expected to trade with stability below 20.00 pesos per dollar, while the market awaits the monetary policy announcements from the banks of Canada and Brazil tomorrow, Wednesday, the European Central Bank Thursday the 27th and the Bank of Japan on Friday the 28th.