Mexican Peso Recovers from Yearly Low, Trading at 19.57 – Analysis and Predictions
The Mexican Peso has shown signs of recovery after hitting a yearly low of 20.22, now trading at 19.57. Despite this improvement, the Peso is still down over 2% and remains volatile against the USD.
The current turmoil in the financial markets has led to a surge in safe-haven demand for currencies like the Japanese Yen and Swiss Franc, impacting emerging market currencies including the Mexican Peso. Wall Street indices have also experienced losses, heightening financial market stress and affecting USD/MXN volatility.
Upcoming data releases in Mexico, such as Auto Exports on Tuesday and inflation along with Banxico decision on Thursday, will provide further insights into the economic situation. Meanwhile, recent reports from the US indicate mixed performance in the manufacturing and services sectors.
Market Analysis and Predictions for Mexican Peso and USD/MXN
- Market sentiment remains negative, driving the financial markets amidst fears of a potential US recession.
- Mexico’s upcoming Auto Exports and inflation data will be crucial for understanding the economic outlook.
- US ISM Services PMI data shows growth in the services sector, contrasting with the manufacturing sector.
- The CME FedWatch Tool indicates high probability of a 50-basis-point interest rate cut by the Fed in September.
Technical Analysis and Forecast for USD/MXN Exchange Rate
The USD/MXN pair has seen sharp fluctuations, rising above 19.30 and hitting a 22-month high. Despite some retracement, the pair is expected to continue its upward trend in the near term.
Analysis of technical indicators like the Relative Strength Index (RSI) suggests potential for further gains in the USD/MXN pair. Key resistance levels to watch include 19.50 and 20.00, while support levels are at 19.22 and 19.00.
Overall, market volatility, economic data releases, and global factors like US recession fears will continue to influence the Mexican Peso and USD/MXN exchange rate in the coming days.
