USD/MXN Signals & Technical Analysis
About the USD/MXN (US Dollar and Mexican peso)
USD/MXN pair is the abbreviated term used for US dollars and Mexican peso. the US Dollar's nickname is Buck and the Mexican peso does not have a nickname. And this pair also do not have a nickname. Before we get into the particulars, what exactly does the USD/MXN rate mean? The exchange rate tells you how many Mexican pesos (the quote currency) are required to purchase one US Dollar (base currency). For example, if the pair is trading at 19.07, it means it takes 19.07 Mexican pesos to buy 1 US Dollar.
USD/MXN Forex Pair Update
The USD/MXN forex pair has been on a downward trend since the start of the year, reaching a low of 17.7775 MXN per USD on June 18, 2023. This is the weakest level for the Mexican peso since the start of the COVID-19 pandemic.
There are a number of factors that have contributed to the weakness of the Mexican peso, including:
- Rising inflation: Inflation in Mexico has been rising steadily in recent months, reaching a 20-year high of 7.68% in May 2023. This has put pressure on the peso, as investors have sought to protect their wealth from inflation by buying assets denominated in US dollars.
- Slowing economic growth: The Mexican economy is growing at a slower pace than expected, due to a number of factors, including the COVID-19 pandemic and the war in Ukraine. This has also put pressure on the peso, as investors have become less optimistic about the Mexican economy.
- Political uncertainty: The Mexican government is facing a number of challenges, including a corruption scandal and a divided Congress. This has led to political uncertainty, which has also put pressure on the peso.
Despite the weakness of the peso, some analysts believe that the currency may have reached a bottom. They point to the fact that the Mexican central bank has raised interest rates to 7.75% in an attempt to prop up the currency. They also note that the government has taken steps to stabilize the economy.
USD to MXN Live Chart
The USD to MXN live chart shows the current exchange rate between the US dollar and the Mexican peso. The chart is updated in real-time, so you can see how the exchange rate is changing from time to time.
USD MXN Forecast
The USD to MXN exchange rate is forecast to remain volatile in the near term. The Mexican economy is facing a number of challenges, which are likely to keep pressure on the peso. However, the Mexican central bank has taken steps to prop up the currency, and the government has taken steps to stabilize the economy. These measures may help to stabilize the peso in the near term.
Overall, the USD to MXN exchange rate is likely to be range-bound in the near term. The currency pair is likely to remain volatile, and investors should carefully consider the risks and rewards before making any investment decisions.
Breaking Down USD/MXN
The United States dollar, or the American dollar, is the official currency, or money, of the United States of America and is also used in a number of different countries across the border. It is also the standard money for global markets selling goods such as gold and oil (fuel). While writing, the symbol for the American dollar is the dollar sign ($). Dollars can also be known as USD (U.S. Dollar).
The $Mexican Peso (sign: $; code: MXN) is the currency, or money, of Mexico. this $ symbol is used for peso which is the same with the US dollar this symbol is got from the Spanish-Mexican currency. this currency counted in the most traded currencies list The peso was officially issued by Spain so that why its name is Spanish dollar which continues inflow until the mid 19th century. The first coin were represented in 1863 with the named of centavos and worth one-hundredth of the peso. these coins continued inflow until the mid -20th century, but their content of gold was reduced substantially over time.
Correlation is merely a mutual relationship or connection between two or more things.
Positive correlation – The positive relationship merely is when pairs move in tandem with each other.
In the forex world, the EURMXN, GBPMXN, and EURPLN pairs are positively correlated
Negative correlation – In contrast, a negative relationship is when forex pairs move in the opposite direction, For example, XPTUSD, XTIUSD, and NOKJPY
Economic Events: The movement in the US Dollar economic and MEXICAN events determine the exchange rates. Top of the line economic events includes GDP, Employment Change, Industrial Production, and Consumer Price Index. Better than forecast data increases the demand for related currency and impacts the value of either the US Dollar and MEXICAN, causing fluctuations in the USD/MXN exchange rate.
Major Economic Events
Gross Domestic Product – the gross domestic product is the central measure of economic growth in the region.
Employment Change – The Sterling is also sensitive to changes in employment, as slacks in the labor market causes a drop in Inflation rates.
Consumer Price Index – Since one of the goals of the BOP is to maintain price stability, they keep an eye on inflation indicators such as the CPI. If the annual CPI deviates from the central
Industrial Production – This measures a change in the total inflation-adjusted value of output produced by manufacturers, mines, and utilities.
Political Events - Another critical factor is the political aspect. Instability, as seen in the Brexit referendum, can entirely change the direction of the currencies. So, stay up-to-date on the latest political and economic news.
What Determines the USD/MXN exchange Rate?
Several factors can impact the USD/MXN rate valuation, including:
FRS & BOM Monetary Policies: Federal Reserve System and Bank of Mexico Authority control the supply of money in the market, to keep the economy on track. A dovish policy, which is also known as expansionary policy, from either of the central banks, weakens the related currency. In contrast, a hawkish monetary policy (contractionary policy) strengthens the currency
The USD/MXN is traded in amounts denominated in the US Dollar.
Standard lot Size: 100,000
Mini lot size: 10,000
One pip in decimals 0.0001
Pip Value: $0.53