USD/MXN: Mexican peso consolidates gains as Mexico-US talks begin

• The Mexican peso and Turkish lira, top performers on Wednesday. 
• USD/MXN remains near 19.50 despite US Dollar strength. 

The Mexican peso is about to post another daily gain versus the US Dollar as it continues to recover from multi-month lows but still remains below the level it had a week ago, before the US tariffs announcement. 

A correction after the rally, optimism about a potential agreement and also the start of the talks today in Washington supported the recovery of the Mexican peso. The USD/MXN bottomed during the American session at 19.46 but rebounded. As of writing is hovering around 19.50/52, posting a modest daily loss for the day. 

The Mexican peso is among the few currencies to the up against the US Dollar on Wednesday. The greenback recovered after a sharp decline and reversed sharply, erasing all losses but not versus the peso. 

Mexican officials have hopes negotiating a deal with the White House over the next few days in order to avoid a 5% import tariff that US President Trump said would begin June 10 if Mexico does not take clear action to limit the flow of immigrants. In a few minutes, a meeting on immigration will take place. 

USD/MXN Levels 

The main trend still points to the upside, but the strength eased over the last few days. A consolidation below 19.50 would point to the next strong support that stands at 19.30. On the upside, the immediate resistance is seen at 19.65/70 and above, a daily close on top of 19.82 would likely lead to a test of the 19.95/20.00 critical barrier. 

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