USD/MXN turns to the upside and jumps to 24.30

• Mexican peso turns negative across the board, imitating Wall Street.
• USD/MXN hits six-day highs, testing the 20-day moving average.

The USD/MXN pair bottomed earlier on Tuesday at 23.75 but then it reversed sharply and reached during the American session at 24.30, the highest level in six days. As of writing, it is hovering around 24.25, rising for the second day in a row.

The Mexican peso is among the worst performers on Tuesday. It was in positive territory during most of the day but then turned lower as equity prices in Wall Street also turned red. Other emerging market currencies showed more resilience and held on to gains versus the greenback.

Mexico: Labor market hit by COVID-19

During April, the Mexican economy lost 555K jobs amid a shutdown to curb the coronavirus. It was the worst month ever for jobs. During 2019, 342K jobs were created. The board of the Bank of Mexico will meet on Thursday and is expected to continue cutting rates.

Mexico’s President Lopez Obrador will announce on Wednesday his plan to return to “the new normal”. The quarantine is set to be lifted on some regions on May 17 and on June 1 in all the country.

Technical levels