Mexico peso slumps past 200-day SMA to 2-month low

MEXICO CITY Thu Nov 8, 2012 4:10pm EST

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MEXICO CITY Nov 8 (Reuters) - Mexico's peso weakened sharply to a two-month low on Thursday as global markets fell on mounting concerns about U.S. lawmakers' ability to avoid a "fiscal cliff" that threatens the U.S. economic recovery.

The peso shed 0.78 percent to 13.1730 per dollar, its weakest since early September.

Losses accelerated after the cost of dollars in pesos rose above its 100-day simple moving average earlier in the session and then broke past the currency pair's 200-day average just below 13.17 per dollar.

The 200-day average is a key resistance level and a strong break past it could signal steeper losses for the peso are coming.

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Comments (1)
mick68 wrote:
Wow!! A mexican peso story in the face of the bloodbath on wall street!

“You can ignore truth, but you can’t ignore the consequences of truth.”

Nov 08, 2012 4:20pm EST  --  Report as abuse
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