Chart of the Day: USDMXN (weekly)
With the USD finding buyers easy to come by, we’re seeing emerging-market (EM) currencies struggling. For example, in the past month we’ve seen the USD rally against all EM currencies except the Thai baht, where USDTHB has fallen 1%. If it weren’t for the fact that global bond yields are so low and, in many cases, negative, we’d be seeing EM currencies taken to the cleaners.
USDMXN is breaking out of a multiyear triangle consolidation pattern. Given the length, duration and structure behind this pattern, if we see a convincing weekly close through the downtrend, it could mark the start of a more significant rally.
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