The Mexican currency outlines its second week of gains in the wire, benefited by economic data from China
In the early hours of this Friday, the Mexican peso resumes its bullish pace against the dollar and is about to close its second week of gains straight. The exchange rate drilled a strong support of 18.80 units and stands at 18.7852 units. The advance is 7.38 cents for the local currency (0.39%), with figures from the Bank of Mexico (Banxico).
Signs of stabilization in the Chinese economy and a weakness in the dollar allow the Mexican currency to continue its path below the strong support of 18.80 units per dollar. China reported that its exports rebounded to five-month highs in March, which improves sentiment in the markets and benefits risk assets.
The Fear & Gread index, which measures investor sentiment, rises to 75 units. The measure generated by CNN Business expresses fear or optimism in the market with a range of zero to 100 in which zero means the highest degree of fear and 100 is the record for extreme optimism. Yesterday it fell to 68 units.
On the other hand, the VIX index, which is a measure of volatility in the markets, decreases -5.53% to 12.31 units. The lower volatility also boosts the demand for risk assets, by reducing the possibility of unexpected movements in parity.
Weakness of the dollar
The trade balance figures also had a negative effect on the US dollar as China announced that its imports fell in March for the fourth consecutive month. Of these, those from the United States were reduced by 28 percent.
The Dollar Index (DXY), which measures the strength of the greenback against six reference currencies, falls -0.42% and is at a level of 96.77 units. Bounces down after having broken a four-day losing streak with losses. It operates below its 200-day moving average of 97.12 units.
Source: El Economista
The Mazatlan Post