The Mexican Peso is the second-best performing EM currency with a gain of nearly 6% YTD. Analysts at Société Générale ponder the possibility of a move below 18.00 in the USD/MXN pair.

50-DMA near 19.00 set to provide resistance

“Whether USD/MXN has a go at 18.00 is probably down to the FOMC minutes and US PCE.”

“The 50-Day Moving Average near 19.00 is likely to provide resistance.” 

“Failure to hold 18.30 can lead to persistence in the decline towards the lower band of a multi-month channel near 18.10 and 17.90/17.60.”