EURMXN is breaking higher out of a triangle consolidation.
The EURMXN is breaking out of a long term consolidation inside a triangle that has formed all of 2019. This is a significant development for a couple reasons. First, in the Forex market, we have been concerned with the “low volatility” environment in recent weeks. However, one of the signals that suggests volatility may be right around the corner is when the EURMXN starts to move higher, which usually equates to a higher volatility environment. Secondly, a lot of economist believe that Banxico may be ready to start an easing cycle, which would also be MXN negative as well.