USD/MXN hits two-week highs near 19.00 and retreats toward 18.90

• Mexican peso reverses from monthly highs and hits lowest versus US dollar since January 8. 
• USD/MXN finds resistance below 19.00 and loses momentum. 

The USD/MXN pair is rising on Monday for the third day in a row boosted by risk aversion. The greenback continues to rally against emerging market currencies as global markets tumble. 

Last week USD/MXN closed at 18.78, and today it jumped to 18.97 before pulling back to 18.88 where it is trading, about to post the highest daily close since January 2. The move higher took place as global stocks tumbled on the back of concerns about the impact of the spread of the virus and its effects on the economy. 

The greenback is up against most emerging market currencies and also versus majors. The US Dollar Index (DXY) is testing the 98.00 area, at the strongest level since late November. 

The demand for safe-haven assets remain firm and will likely continue that way as long as fear dominates global markets. On Tuesday, the Federal Reserve will start its two-day monetary policy meeting. No change is expected. In Mexico, the critical report will be on Thursday with the first estimate of Q4 GDP. 

Technical levels