USD/MXN tumbles more than 2.50% as Mexican Peso soars

The Mexican peso jumped across the board following comments from US Commerce Secretary Wilburn. He mentioned during an interview with CNBC, that the US and Mexico should work on a mechanism to make the relationship between the MXN and USD more stable. 

The peso could recover “quite a lot” if Mexico and the U.S. can reach a sensible agreement - U.S. Commerce Secretary Wilbur Ross

USD/MXN initially rose to 20.09, near weekly highs but then plummeted, falling almost 3% from the highs in a few minutes. The pair first dropped toward 19.65 and recently broke below 19.60 falling to 19.51, the lowest level since US election. 

The Mexican peso continues to recover ground against the US dollar. Since the inauguration of Donald Trump, USD/MXN has been moving with a bearish bias. Back then it was trading at record highs above 22.00. From those levels, it dropped more than 10%. 

Form a technical perspective, the peso currently is trading around 19.60, that is where the 61.8% Fibonacci retracement of the rally that started the day of the US presidential elections. A consolidation below could open the doors to an extension of the decline.