• USD/MXN slipped sharply lower on Monday as Mexican Peso was buoyed by President-elect Donald Trump's tariff policy.
•According to a Monday Washington Post article, Trump's advisers are considering tariff measures that would apply to all nations but only cover essential imports.
• On the data front, Mexico's unemployment rate rose marginally to 2.6% in November 2024, up from 2.5% in October, but stayed below the anticipated 2.7%.
• The peso stands out as a leading emerging market currency, supported by favorable trade dynamics and robust domestic economic growth.
• At GMT 16:37, the dollar was down 1.66% against the dollar Mexico's peso at 20.277
• Immediate resistance is located at 20.414 (38.2%fib), any close above will push the pair towards 20837(23.6%fib).
• Support is seen at 20.242(Daily low) and break below could take the pair towards 20.060(50%fib).
Recommendation: Good to sell around 20.350, with stop loss of 20.600 and target price of 20.150
