• USD/MXN held steady on Tuesday as the dollar was elevated by U.S. Treasury yields as investors bet on fewer Federal Reserve rate cuts in 2025.
• U.S. Treasury yields rose overnight, with the 10-year yield hitting its highest level in nearly seven months, driven by increased debt supply amid low trader activity.
• Looking ahead, investors are bracing for changes in tariffs, deregulation, and tax policy in 2025, as Trump’s return to the White House in January could impact markets.
• At GMT 16:35, the dollar was up 0.10% against the dollar Mexico's peso at 20.184
• Immediate resistance is located at 20.231 (38.2%fib), any close above will push the pair towards 20.378(23.6%fib).
• Support is seen at 20.132(50%fib) and break below could take the pair towards 20.012(61.8%fib).
Recommendation: Good to buy around 20.170, with stop loss of 20.000 and target price of 20.300
