EEM Daily Chart.
The iShares MSCI Emerging Markets ETF (NYSE:EEM) versus USD/MXN is still one of my favorite correlations in the markets. Today, the EEM has bounced back to the 38% retracement and underside of a broken trend line. And based on the negative earnings we have seen in tech land, if the market looks to sell the EEM tomorrow, that could make USD/MXN ripe for a bounce from the sub 20.0000 exchange rate.
Keep in mind, Banxico delivered a surprise hike a few weeks ago. You know how far the MXN has rallied? Not much, as we are near those levels even after a recovery in EEM and stocks (S&P 500), which are at all-time highs.
Chart Of The Day: EEM Versus USD/MXN
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