- The Mexican peso set a 0.89% weekly profit, as the economic endurance markets surprise markets.
- Comments from Trump's mixed tariffs interfere with volatility, but risks the appetite increases the emerging market currency.
- Traders braces Mexico next week to release GDP GDP to measure the risk of recession.
The Mexican peso extended its benefit to the US dollar on the second consecutive day, which was ready to complete 0.89%, sponsored by the risk of appetite improvement and better than expected Mexican economic data. During this writing, the USD/MXN will trade at 7:52 pm, which is 0.32%.
Wall Street was closed with a profit of Friday's session, although US President Donald Trump reported contradictory comments about China. Overnight news for American traders revealed Beijing's willingness to reduce US products tariffs. Nonetheless, Trump said he would not reduce tariffs if “they do not give us anything important”.
Instituto Nacional de Estadistica Geografia E Informative (Ingi) showed that the Mexican economy grew in February, contrary to forecasts that required moderate expansion.
In the meantime, the emotional index of the April University of Michigan (UOM) in the US deteriorated sharply, posting its fourth lowest reading since the late 1970s – the example that Americans were doubtful in economic prospects.
Therefore, at the edge of USD/MXN lower, which was pushed by Mexican data. Next week, however, Ing will release the growth rate of the first quarter of 2025 (GDP). Negative reading would confirm that the economy is in a technical recession.
Daily Digest Market Refers: Mexican peso was evaluated during the week despite Banxico Dovind Pose
- The difference between Banxico and FED favors in the USD/MXN even upside down. The Council of Banxico published its decision to continue to mitigate politics. In contrast, Fed is considered caution as some officials have shown concerns about the re -re -re -re -regulation of tariffs.
- Mexican economic activities expanded 1% in February, which is higher than 0.6%. On an annual basis, the activity fell to 0% -0.7%, which is better than expected.
- Economic data that appeared during the week was in the first half of April from the inflationary reaction, it was revealed. The retail sale in February was lower than expected, showing a constant economic slowdown.
- Omar Mejia Castelazo, Deputy Governor of Banxico, revealed that the economy has slowed down since 2023, he said in Washington.
- The Citi Mexican Expectation Survey shows that economists hope that Banxico would reduce their rate by 50 base points at the May meeting. Throughout the year, they project the main reference rate, which ends near 7.75%.
- In terms of the USD/MXN exchange rate, private analysts see an exotic pair of finishing 20.93 compared to 20.90. It is predicted to end with an inflation of 3.78% in 2025, with a main indicator of 3.80%, mostly aligned with a previous survey.
- The Mexican economy will be expected to increase by 0.2% in 2025, which is less than 0.3% in the previous study.
USD/MXN Technical Outlook: Mexican peso stays bullish because USD/MXN is below the key technical level
Price action shows that USD/MXN is heavily tilted and can continue its downward trend if it records less than 19.50 every day. According to this, the next support would be 23 lowest 19.46, which is the current one-year (YTD) low, followed by 19.00 psychological indicator.
If buyers want to rise higher prices, they must reclaim the 200-day SMA at 7:93 pm, followed by 20.00 drawing. The latest violation reveals near April 14th near the highest and 50-day SMA joining SMA 20.25-20.29 before testing the 100-day SMA 20.33.
Mexican Peso Fuck
Mexican peso (MXN) is the most tradable currency among Latin -American peers. Its value is widely determined by the level of money from the Mexican economy, the Central Bank of the National Bank, the level of money transfers living in the state and even abroad, especially the United States. Geopolitical trends can also move MXN: for example, the decision of the near -field process – or the decision of some companies – is also considered to be relocated to the production capacity and supply chains closer to its home countries – also a Mexican currency catalyst, as the country is considered a key center in the American continent. Another Catalyst for MXN is oil prices because Mexico is the main exporter of goods.
Mexican central bank, also known as Banxico, the main purpose is to maintain inflation at a low and stable level (3%or near it, the center of the tolerance strip between 2-4%). For this purpose, the bank sets the level of interest rates. If inflation is too high, Banxico tries to tame it by raising interest rates, making households and business money more expensive, thus cooling demand and the entire economy. Higher interest rates are generally positive about the Mexican Peso (MXN) as they cause a higher yield, making national investors a more attractive place. On the contrary, lower interest rates tend to weaken MXN.
Macroeconomic data publications are key to assessing the state of the economy and may affect the assessment of the Mexican peso (MXN). For MXN, a good Mexican economy based on high economic growth, low unemployment and high trust is good. Not only does this attract more foreign investment, it can encourage the Mexican Bank (Banxico) to increase interest rates, especially if this strength is accompanied by increased inflation. If economic data are weak, MXN is likely to be depreciated.
As a result of the resulting market, the Mexican Peso (MXN) tends to catch during risk periods or when investors perceive that the wider market risks are low and are therefore eager to deal with more risk investments. Contrary to MXN, MXN tends to weaken during market survival or economic uncertainty, as investors tend to sell higher -risk assets and flee to more stable secure parakes.
