CANADA OCT JOBS +14.5K VS FORECAST +25K, PRIOR +46.7K

MNI BRIEF: PBOC To Support Credit In Key Sectors: Q3 Report

MNI BRIEF: China To Prohibit New Hidden Debt -Finance Ministry

MNI BRIEF: China Unveils CNY6 Trl Limit For Hidden Debt

MNI BRIEF: CBRT Raises Medium-Term Inflation Forecast

MNI BRIEF: China To Boost Countercyclical Effort - Minister

EZ/UK Bond Supply Calendar: NE, UK, DE Auction on Tuesday

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY NOV INDEX 73.0

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

EUROPEAN FISCAL: DE 2025 Budget Gap Grows; Political Risk Is Rising

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MEXICO: USDMXN Extends Gains to 2.15%, Back Above August 04 Highs

MEXICO
EM BulletHomepagemarkets-real-timeMexicoBulletGlobalEmerging Market NewsRegion
  • After a subdued overnight session where USDMXN held a relatively tight range around 19.80, initial risk-off sentiment and the then renewed demand for the greenback have prompted a substantial move lower for Latin American currencies and the Mexican Peso has not been immune.
  • USDMXN has extended gains to as much as 2.15% in recent trade, rising to a session high of 20.2374 and has further exhibited the high volatility on show this week.
  • Price action brings the pair back above initial resistance, which is seen at 20.2181, the Aug 5 high. It is also worth noting that Wednesday’s sharp pullback from the intraday high and yesterday’s bearish price action, highlights a potential short-term top.
  • Despite the bearish technical signal, short-term positioning is likely to be much cleaner now, and therefore developments surrounding potential Trump policies will still be eagerly anticipated by both market participants and policy makers alike.
  • As noted earlier, Banxico meets next week and while a 25bp rate cut is broadly expected, developments in the currency could still play an important role in the board’s decision-making progress going forward.
177 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • After a subdued overnight session where USDMXN held a relatively tight range around 19.80, initial risk-off sentiment and the then renewed demand for the greenback have prompted a substantial move lower for Latin American currencies and the Mexican Peso has not been immune.
  • USDMXN has extended gains to as much as 2.15% in recent trade, rising to a session high of 20.2374 and has further exhibited the high volatility on show this week.
  • Price action brings the pair back above initial resistance, which is seen at 20.2181, the Aug 5 high. It is also worth noting that Wednesday’s sharp pullback from the intraday high and yesterday’s bearish price action, highlights a potential short-term top.
  • Despite the bearish technical signal, short-term positioning is likely to be much cleaner now, and therefore developments surrounding potential Trump policies will still be eagerly anticipated by both market participants and policy makers alike.
  • As noted earlier, Banxico meets next week and while a 25bp rate cut is broadly expected, developments in the currency could still play an important role in the board’s decision-making progress going forward.