After last week's CPI turned the markets upside down, we are looking at the performance of the US dollar…
The insights into exotic pairs: the MXN
We anticipate the end of the week to bring more volatility to the MXN.
At first, the USMCA agreement will be signed during the G20 summit. Canada and Mexico hope the US will drop its steel and aluminum tariffs. However, according to analysts, the US can impose quotas instead of tariffs, which will not be welcomed by Canada and Mexico. If the further uncertainties, appear, the MXN can slip. In addition, AMLO and his administration will take the cabinet on Saturday. His new reforms has already shaken the market.
In addition, the upcoming finance minister Carlos Urzua announced a nomination of the new central bank deputy governor Gerardo Esquivel on Monday. The Tuesday’s comments made by Mr.Urzua about a larger primary budget surplus next year increased the investors’ confidence.
USD/MXN reached its July highs on Monday, closing above the 20.5 level. The negative news about further policy actions by president-elect will help the pair to rise towards the resistance at 20.70. Otherwise, the successful USMCA deal and hawkish comments by the new administration will pull the pair downwards to the support at 20.06.
To conclude with, the strength of the Mexican peso is heavily depended on the policy decisions by the upcoming administration. If Andres Manuel Lopez Obrador gets on well with US president Donald Trump and make supportive reforms for the economy, we can expect the peso to recover.
The release of the US CPI on Wednesday will determine whether US500 continues its advance or reverses down. Tensions between the US and China boosted the demand for gold, but will it persist?
Gold still has space to fall, and the euro is trying to price the ECB rate hike. Inflation readings, Elon Musk problems, earning reports, and the overall market outlook for forex await you in this video.
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.