MEXICAN PESO FORECAST: USD/MXN PRICE ACTION LOOKS TO BANXICO INTEREST RATE DECISIONMexican Peso is on the radar headed into the Banxico rate of in
MEXICAN PESO FORECAST: USD/MXN PRICE ACTION LOOKS TO BANXICO INTEREST RATE DECISION
- Mexican Peso is on the radar headed into the Banxico rate of interest determination due Thursday
- USD/MXN value motion has drifted sideways to type a buying and selling vary between 19.80-20.30
- Greenback-Peso may see some volatility across the launch of US inflation information additionally on faucet
The Mexican Peso has largely lacked route in opposition to its US Greenback peer during the last 4 weeks. USD/MXN value motion has carved out a comparatively tight buying and selling vary because of this, however this sideways pattern may quickly change with forex volatility prone to speed up. Excessive-impact occasion threat going through the Greenback-Peso, which is printed on the DailyFX Financial Calendar, contains the upcoming launch of US inflation information along with the Banxico fee determination. These basic catalysts stand to weigh notably on the route of USD/MXN value motion.
USD/MXN PRICE CHART: WEEKLY TIME FRAME (01 JUN 2020 TO 11 MAY 2021)
Chart by @RichDvorakFX created utilizing TradingView
USD/MXN would possibly reply positively to higher-than-expected US inflation information and corresponding rise in Treasury yields. This would possibly deliver final week’s excessive round 20.300 into focus for US Greenback bulls, which can also be underscored by the 100-day easy shifting common. A disappointing print on inflation may ship USD/MXN value motion recoiling decrease, nonetheless. Seeking to the opposite facet of the equation, the Mexican Peso has potential to strengthen if Banxico stands pat on charges and officers drop hints of one other minimize coming later this 12 months. This might come on the again of Mexico inflation hitting 6% year-over-year in April.
As such, there might be a state of affairs the place USD/MXN value motion plummets to deal with the zone of technical help round 19.500-19.800. Invalidating this help degree may subsequently deliver 2020 swing lows round 18.500 into focus for USD/MXN bears. Conversely, continued warning by Banxico possible stands to maintain Mexican Peso bulls at bay and year-to-date lows intact.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
Join with @RichDvorakFX on Twitter for real-time market perception
factor contained in the
factor. That is in all probability not what you meant to do!nn Load your software’s JavaScript bundle contained in the factor as a substitute.www.dailyfx.com