USD/MXN reverts recent losses

FXStreet (Edinburgh) - The US dollar has almost fully retraced yesterday’s sharp sell off vs. the Mexican peso, pushing USD/MXN back near the 14.90 level.

USD/MXM boosted by the dollar

The resurgence of the bid tone around the greenback is backing today’s steep recovery in the pair, coming back from the vicinity of 14.60 to levels shy of 14.90. The renewed softness in the crude oil prices prompted the WTI to trade back below the $50.00/bbl handle, adding extra selling pressure to the peso at the same time.

In the data space, US ADP Report missed the median during January, with the private sector adding 213K jobs vs. 225K expected; on the other direction, the ISM Non-Manufacturing surpassed forecasts during the same period, climbing to 56.7 vs. 56.2 previous. Next of note in the Aztec economy will be the Consumer Confidence gauges due on Friday.

USD/MXN levels to watch

At the moment the pair is advancing 1.87% at 14.8539 with the next resistance at 14.9080 (high Feb.3) ahead of 14.9829 (high Feb.2) and then15.0648 (2015 high Jan.30). On the downside, a breach of 14.5510 (low Jan.27) would aim for 14.4353 (low Jan.15) and finally 14.3721 (low Dec.14).