USD/MXN tests weekly lows as Trumps says Mexico will reimburse the US for the border wall

The Mexican peso remained steady as President Trump mentioned that the construction of the board wall with Mexico will begin “as soon as possible”. He repeated in an interview with ABC News that Mexico will absolutely reimburse the US for the cost of building the wall. 

USD/MXN opened the day above 21.50 and reached a 2-day high at 21.59 before turning to the downside. Since the European session, the pair has been moving with a downside bias. It bottomed at 21.25, where the weekly low is located. 

US President Trump: Mexico will eventually pay for border wall

Levels to watch 

The area around 21.25 capped the downside and is becoming a key short-term support. A break lower could open the doors to a decline toward 21.00. On the upside, the relevant short-term resistance could be seen between 21.48 and 21.58; a consolidation significantly above could put the peso under pressure. 

At the moment, the pair is moving way from the lows and is trading at 21.35. A daily close around current levels would be the lowest since January 6.