USD/MXN: Peso drops for the 2nd day, shrugs-off ForeignMin comments

The USD/MXN cross extends its rebound from three-week lows into a second day this Friday, as tensions between the US and Mexico over the border wall remain flared up.

Latest soothing comments from the Mexican foreign minister failed offer any respite to the Mexican Peso, keeping USD/MXN in close proximity to daily highs, near 21.33 levels.

Mexico’s foreign minister Luis Videgaray noted that they are ready to work together with the Trump administration.

Yesterday, the Mexican currency slumped across the board in wake of escalating tensions between both the economies after Mexico’s president, Enrique Peña Nieto, canceled a planned meeting with US President Trump in the US. Trump has made it clear that Mexico needs to pay for the border wall.

USD/MXN Technical Levels

On the higher side, previous top of 21.3632 could offer resistance, which, if breached could yield a re-test of 21.4611 (double top neckline). A break below 5-DMA support of 21.3077 levels would expose 21.00 (zero figure).