Mexican Peso sellers are getting guidance from the options market as the USDMXN pair trades at 17.0837. The presence of a Doji candlestick near the 17.10 level suggests uncertainty. According to @nehcap’s opinion, there is only a small chance of a limited recovery happening.
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USD/MXN picks up bids to print mild gains around 17.10 amid early hours of Thursday’s Asian session, after reversing from a two-week low the previous day.
The Mexican Peso (MXN) pair dropped to the lowest levels in a fortnight on Wednesday before reversing from 17.05 but failed to offer any decisive closing and hence portrayed a bullish Doji candlestick on the Daily chart. The same joins the pause in the options market’s bearish bias to underpin the USD/MXN pair’s latest rebound.
Trend: Limited recovery expected
That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, printed the first daily gain in six while marking the 0.003 figure by the end of Wednesday’s North American trading session.
It’s worth noting, however, that the weekly RR still shows the strongest bearish bias in five weeks and hence suggests limited room for the Mexican Peso sellers.
Also read: USD/MXN prolongs its downward streak despite hawkish Fed remarks
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