The mexican peso remains relatively strong and trading near the highest levels in August, despite the recent speeches of Trump, sending tough messages about the Treaty of Free Trade of North America, repeating threats of campaign.
In the framework of the beginning of negotiations for the new TCLAN, Trump seems to harden positions while the market for now does not show major concerns, judging by the price of USD/MXN.
The pair yesterday jumped to 17.85, but closed the day below 17.70. Is currently trading at 17.65, near the area of 17.60, that is where they are the least since August. Breaking below the lows of the year around 17.45 could be exposed.
The pthat mexican is still showing stable, between 17.90 and 17.60. The output of this range could lead to increases in volatility.
Strongest in Latin America
In the last week, the major currencies of the region have risen by more than 1% against the dollar. It highlights the chilean peso and the real Brazil.
The USD/CLP falls for the fourth day in a row and is operating in 638,47 the lowest price since February of this year.
For its part, the USD/BRL operates in 3,139, near the minimum in two weeks; moving with a bias bearish and pointing to 3,100, which is the next support of consideration.
The tone of the short term is in favor of the currencies tied to commodites. Will have to see if this persists next week, once completed the meeting of central bankers in Jackson Hole.