USD/MXN refers to the US Dollar/ Mexican Peso currency pair. USD/MXN is an exotic pair, as Mexico is considered a developing economy, and it is being traded against a major currency....
The USD/MXN pair can be traded in the US from Sunday evening until Friday afternoon though trading volume and levels of volatility vary greatly. In general, morning hours present the best time to trade the Mexican Peso as this period includes the release of US economic data (8.30-10 am ET) and it is the window of greatest activity. Mexican peso trading hours also follow US equity and futures exchange hours. Mexico’s natural resources make it a commodity-based currency. It is a top-15 producer of oil, and the value of the MXN is strongly influenced by oil and gas price fluctuations and any other economic indicators impacting energy futures markets, such as the US Oil Inventory report. Moreover, the Mexican peso is interdependent with the Colombian peso (COP) and the Brazilian real (BRL), both of which are heavily reliant on petroleum exports. The USD/MXN currency pair is impacted by events occurring both in Mexico and the US. The two countries’ economic policies are correlated, with Banco de México frequently announcing decisions close on the heels of US Federal Reserve announcements.
During the trading session on Wednesday, we saw quite a bit of volatility in this pair with the US dollar plunging after the CPI came in cooler than anticipated, with a core CPI reading of 0.23% month over month instead of the expected 0.3%. However, the fundamentals in this pair have not changed. This is still a holding pattern between now and the Trump administration taking over in about five days
The USD/MXN has returned to its higher values and is once again challenging what has turned out to be rather durable resistance vicinities since early November, however this time may prove different.
The US dollar surged against the peso on Friday following a stronger-than-expected US jobs report, making it unlikely the Federal Reserve will cut rates soon.
During the trading session on Wednesday, we had seen the US dollar spike a bit against the Mexican peso as interest rates climbed again in the early hours.
After touching highs of nearly 20.90000 on New Year’s Eve, the USD/MXN has seen some selling take place as it braces for the return of full market value.
The US dollar rallied slightly during the trading session on Friday gaining about 24 basis points as I record this. The market pulled back toward the 20.60 level and stabilized a bit.
The USD/MXN has gained slightly upwards in trading the past couple of days, but this has taken place in thin market conditions and correlated with USD centric strength which has been exhibited.
The USD/MXN has been able to continue trading near the lower parts of its near-term values as sentiment among financial institutions appears to have stabilized momentarily.
The US dollar has rallied rather significantly during the trading session on Wednesday, as the FOMC in the United States cut interest rates by 25 basis points.
The USD/MXN has been able to sustain lower momentum as financial institutions seem to be adjusting to political realities which will affect economic policies and the currency pair.
After trading around the 20.73000 level into Wednesday of last week, the USD/MXN has begun to exhibit calmer trading sentiment among financial institutions, but the currency pair remains within higher elements still even as it trades lower.
The USD/MXN was hit by an early surge higher this morning when news circulated that President-elect Trump will start his tariff negotiation with Mexico with a threatened 25% price tag.
The US dollar's rise against the Mexican peso signals economic trends, migration dynamics, and potential policy shifts, with a key focus on the 21 MXN level.
The US Dollar gapped lower against the Mexican peso during the trading session on Monday, but then turned around to show signs of life.
The USD/MXN is within the lower elements of its one week trend, but remains within the higher part of one month technical consideration, opening the door for a variety of speculative perspectives.
