ONLINE FOREX BROKER
2019-11-11 • Updated
With all this Brexit mess it’s very easy to forget about other currency pairs.
Let’s consider what is going on in the world of the Latin American currencies.
Brazilian real (BRL)
The currency has strengthened on the increased risk-on market sentiment and domestic market enthusiasm surrounding the government strategy over the pension reform. On Friday, the Brazilian president Jair Bolsonaro said that the vote on pension reform cannot take all year as it may hurt the public finances and lead to economic chaos. His attempts to speed up the path of the reform weakened USD/BRL. The next support will lie at 3.7292. If bulls are strong, they will try to push the pair to the resistance at 3.8448 and move it further to the 3.9 level. Alternatively, the pair will fall to the support at 3.7880 and move down to the next support at 3.7292. From the indicators' side, parabolic SAR shows a downward movement for the pair.
Mexican Peso (MXN)
The Mexican currency has been also strengthening on the improved market since March 6. Yesterday, the volatility of the USD/MXN pair increased due to the uncertainties over the construction of the Pemex refinery in Tabasco. Many analysts see the project as poor usage of money. At first, the Deputy Finance Minister Arturo Herrera told about the possible delay of the construction. It helped the pair to test the weekly pivot support at 19.2577. Right after that, the Mexican president reassured the market and commented about his government plans to move ahead on the project. He also stated that the country can pay for both a refinery and investment in Pemex. As a result, bulls tried to take over the market but didn't have enough strength to push USD/MXN above the 19.4366 level (200-day SMA). If the Mexican peso gains more strength, the pair will retest the weekly pivot support at 19.2577. If this level is broken, the next support will lie at 19.1136. Otherwise, USD/MXN will rise above the resistance at 19.4366 to the next resistance at the weekly pivot at 19.6660. Parabolic SAR still shows an upward movement for the pair.
What may affect the currencies this week?
As the Latam currencies are risk-weighted, we need to follow the news which may shake the sentiment in the market and the releases for China.
On Thursday, we anticipate the releases of Chinese fixed asset investment and the level of industrial production. According to analysts, the level of fixed asset investment will reach 6.1%, while the level of industrial production is forecast to fall to 5.5%. Weaker figures will affect the market sentiment and, therefore, pull the emerging market currencies down.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Weaker recoveries were seen in both the UK manufacturing and service sectors, with the latter recording the greatest loss of momentum since July.
Let's dive into the latest developments shaping the global economic landscape. Good news first: the threat of an unprecedented US debt crisis has receded, as US lawmakers passed a bill to raise the debt ceiling and avoid a catastrophic default. Phew! But don't pop the champagne just yet, because storm clouds are still looming. High inflation, rising interest rates, and sluggish growth are challenges that have yet to disappear.
Thanks to the incredible advancements in horizontal drilling and fracking technology, the United States has experienced a mind-blowing shale revolution. They've become the heavyweight champion of crude oil production, leaving Saudi Arabia and Russia in the dust. They even turned the tables and became net exporters of refined petroleum products in 2011.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
