USD/MXN jumps to 19.00 amid a stronger US dollar

• Mexican peso rebounds from 13-day highs versus the US dollar.
• Emerging market currencies tumbled during the American session, sending USD/MXN higher despite NAFTA hopes.

The USD/MXN pair dropped during the Asian session to 18.71, the lowest level since August 10. On US hours, started to rise and accelerated over the last hours amid a rally of the US dollar across the board and particularly against emerging-market currencies.

The sharp bounce from weekly lows could signal difficulties ahead for the peso from a technical perspective. On the fundamental side, today’s data showed a slightly higher-than-expected CPI in Mexico (4.81% annual rate) and weak data in the US. Crude oil prices consolidated near weekly highs and expectations about an agreement on NAFTA between the US and Mexico remained highs. Despite all the mentioned factors, the strong US dollar pushed USD/MNX to the upside. Near the end of the session, the pair was hovering slightly below 19.00.

EM and commodity currencies under pressure

The US dollar gained practically against all currencies on Thursday. Among the worst performers was the Brazilian real (BRL) down 2.0% affected by political concerns in Brazil ahead of the presidential election. USD/BRL broke above 4.0 and is headed toward the highest close since January 2016. The South African rand lost 1.90%, the Australian dollar 1.45% and the Turkish lira 1.44%. In Argentina, the dollar posted a record high close.