MNI BRIEF: Olli Rehn Gets Second Term As Bank Of Finland Head

MNI China Daily Summary: Friday, March 14

MNI BRIEF: China February M2 Stays At 7% Y/Y

RPT-MNI INTERVIEW2: Lag Justifies Faster CNB Easing - Holub

CHINA JAN-FEB NEW LOANS CNY6.14 TRLN VS MEDIAN CNY6.43 TRLN

MNI BRIEF: China's Education Ministry To Boost Graduate Jobs

MNI: CANADA JAN WHOLESALE SALES +1.7%; EX-AUTOS +0.7%

MNI: CANADIAN JAN MANUFACTURING SALES +1.7% MOM

MNI: SPAIN FEB HICP +0.4% M/M, +2.9% Y/Y

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

© 1982-2025 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

MEXICO: USDMXN Showing Reversal Potential on Approach to 20.00

MEXICO
EM BulletMexicoBulletEmerging Market NewsNorth America
  • Following the breach of key support on Thursday around 20.13, USDMXN has continued to grind lower during today’s session, and the clean break highlights the growing potential for a stronger reversal lower. Having slipped below the December lows in recent trade, USDMXN is trading at the lowest level for four months, currently hovering just above the 20.00 mark.
  • Below here, attention turns to the lows seen in the aftermath of the election results at 19.7618, while resistance moves down to 20.3851, the 50-day EMA.
  • Analysts have been sceptical of the peso breaking out of its recent range. They continue to cite the ongoing risks related to tariff uncertainty and a more aggressive easing trajectory from the central bank as providing MXN headwinds. Furthermore, one might assume the significant selloff for US equities in recent weeks would certainly weigh on the emerging market FX basket, of which MXN should be particularly susceptible.
  • However, these dynamics are being shrugged off, and the weaker dollar backdrop along with still attractive carry for the peso, might leave the USDMXN downside vulnerable. Additionally, there appears to be some underlying optimism surrounding the trade talks between US and Mexican officials, emphasised on Thursday by US Commerce Secretary Howard Lutnick praising the country for its calm response to President Trump’s tariff roll-out.
213 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.
  • Following the breach of key support on Thursday around 20.13, USDMXN has continued to grind lower during today’s session, and the clean break highlights the growing potential for a stronger reversal lower. Having slipped below the December lows in recent trade, USDMXN is trading at the lowest level for four months, currently hovering just above the 20.00 mark.
  • Below here, attention turns to the lows seen in the aftermath of the election results at 19.7618, while resistance moves down to 20.3851, the 50-day EMA.
  • Analysts have been sceptical of the peso breaking out of its recent range. They continue to cite the ongoing risks related to tariff uncertainty and a more aggressive easing trajectory from the central bank as providing MXN headwinds. Furthermore, one might assume the significant selloff for US equities in recent weeks would certainly weigh on the emerging market FX basket, of which MXN should be particularly susceptible.
  • However, these dynamics are being shrugged off, and the weaker dollar backdrop along with still attractive carry for the peso, might leave the USDMXN downside vulnerable. Additionally, there appears to be some underlying optimism surrounding the trade talks between US and Mexican officials, emphasised on Thursday by US Commerce Secretary Howard Lutnick praising the country for its calm response to President Trump’s tariff roll-out.