Mexican central bank president Carsten stepping down

Mexican peso weakens on the news

The USDMXN has shot higher on the back of news that the central bank president Augustin Carsten will step down.

The USDMXN moved up to the highest level since November 14th. Technically, the 61.8% of the move down from the election day high to the lowest low post election comes in at 20.8948. The 50% of that range comes in at 20.7472 and that will be eyed as support now.

UPDATE. He is leaving to take a position at the Bank of International Settlements in July. That has eased some of the selling pressure as the move is not a forced move or an indication of stress on the central bank, but rather a better opportunity. The Bank of Mexico raised rates to 7-year highs on November 17th to counteract the weakness in the MXN after the Trump victory.