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FOREX: USDMXN Rises Over 2.5% to Fresh Post-Election Highs, USDCAD Stabilises

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  • There has been a mixed performance across G10 currencies on Tuesday, as tariff related headlines and geopolitical risks continue to dominate broader market sentiment. The USD index stands 0.25% higher on the session, with higher beta currencies such as AUD and CAD underperforming, while the Japanese Yen has notably firmed.
  • USDJPY built downside momentum below the weekly lows around 1.5355 and briefly printed 152.99. It is also worth noting we have broken below the 20-day exponential moving average which had helped to underpin the price action in recent weeks. A daily close below the average could signal scope for a deeper correction towards both the 50-day EMA and the November lows, situated between 151.35/55.
  • AUDJPY and CADJPY have both declined more than 1.2% on the session, signalling a sense of waning risk sentiment, despite US equity markets remaining buoyant and US yields being higher on the session across the curve.
  • USDCAD (+0.66%), which has an outsized move during the APAC session rising to a cycle high of 1.4178, has since moderated and trades roughly 100 pips from those highs at typing.
  • However, USDMXN (+2.35%) has continued to grind higher, eclipsing the post-election high at 20.8072 in the process, a multi-year high for the pair. Clearance of this level resumes the primary uptrend that's dictated price action across H2 this year, and above here, 21.0233 marks the 50% retracement of the post-COVID range.
  • EURUSD briefly rose to a recovery high of 1.0545, but has since resumed its weakening bias to trade at 1.0465 ahead of the FOMC minutes. On Wednesday, Australian CPI and the RBNZ decision are highlights on the docket ahead of the US Thanksgiving holiday.
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  • There has been a mixed performance across G10 currencies on Tuesday, as tariff related headlines and geopolitical risks continue to dominate broader market sentiment. The USD index stands 0.25% higher on the session, with higher beta currencies such as AUD and CAD underperforming, while the Japanese Yen has notably firmed.
  • USDJPY built downside momentum below the weekly lows around 1.5355 and briefly printed 152.99. It is also worth noting we have broken below the 20-day exponential moving average which had helped to underpin the price action in recent weeks. A daily close below the average could signal scope for a deeper correction towards both the 50-day EMA and the November lows, situated between 151.35/55.
  • AUDJPY and CADJPY have both declined more than 1.2% on the session, signalling a sense of waning risk sentiment, despite US equity markets remaining buoyant and US yields being higher on the session across the curve.
  • USDCAD (+0.66%), which has an outsized move during the APAC session rising to a cycle high of 1.4178, has since moderated and trades roughly 100 pips from those highs at typing.
  • However, USDMXN (+2.35%) has continued to grind higher, eclipsing the post-election high at 20.8072 in the process, a multi-year high for the pair. Clearance of this level resumes the primary uptrend that's dictated price action across H2 this year, and above here, 21.0233 marks the 50% retracement of the post-COVID range.
  • EURUSD briefly rose to a recovery high of 1.0545, but has since resumed its weakening bias to trade at 1.0465 ahead of the FOMC minutes. On Wednesday, Australian CPI and the RBNZ decision are highlights on the docket ahead of the US Thanksgiving holiday.