Mexican Peso Indicator Shows Weakness Ahead
- DVAN shows pattern not seen since Trump’s election in 2016
- Leftist Lopez Obrador handily leads in polling ahead of July 1
A Mexican 100 peso banknote
Photographer: Mauricio Palos/BloombergThis article is for subscribers only.
Mexico’s peso looks set for more pain as the country’s presidential vote approaches, according to a technical indicator.
The peso’s DVAN trend line -- a proprietary divergence analysis that measures buying or selling pressure -- is on the longest selling streak since Donald Trump’s election. The bigger the gap between the currency’s stop -- a measure reflecting volatility -- and the trend line, the stronger the negative pressure. The signal may point to more volatility and downside to come.