• USD/MXN climbed on Thursday as market focus shifted to Donald Trump’s presidential inauguration next week and possible inflationary impact of his policies..
• Emerging markets face uncertainty over U.S. rate cuts and brace for potential tariff policies as Donald Trump returns to the White House next week.
• Analysts predict Mexico could face significant economic impacts, though some believe President Claudia Sheinbaum's stricter immigration and tariff policies might help avoid harsh tariffs..
• At GMT 15:54, the pair was trading up 1.32% at 20.728.
• Immediate resistance is located at 20.926(23.6%fib), any close above will push the pair towards 20.977(Higher BB).
• Support is seen at 20.656(38.2%fib) and break below could take the pair towards 20.498(50%fib).
Recommendation: Good to buy around 20.700, with stop loss of 20.500 and target price of 20.950
