The Mexican Peso (MXN) saw a 0.6% decline against the US Dollar on Monday, signaling a temporary pause in the recent bullish trend. While the US Dollar weakened overall in the market, the Peso’s positive momentum took a brief break.
This week, Mexico’s economic calendar is relatively quiet, with only low-tier data releases scheduled. Mexican Retail Sales for June are expected to show a 1.8% year-over-year contraction, compared to the previous 0.3% growth. Inflation figures are also on the horizon, with core inflation forecasted to increase slightly while headline inflation is expected to drop significantly.
Market Analysis: Peso Pullback and Future Outlook
- The MXN retraced against the USD on Monday, but remains up 6.6% overall.
- Investors are eagerly awaiting the Jackson Hole Economic Symposium for insights on potential rate cuts by the Federal Reserve.
- Expectations of a double rate cut in September have decreased, with markets now pricing in a 25 bps cut.
Technical Analysis: USD/MXN Chart Forecast
The USD/MXN pair is approaching key support levels, with the 50-day EMA at 18.35 acting as a potential target. The long-term bullish trend indicates a possible rebound, but technical limits may hinder further gains.
Mexican Peso FAQs
For those interested in the Mexican Peso (MXN), factors such as economic performance, central bank policy, foreign investment, and geopolitical trends play a crucial role in determining its value. Understanding these dynamics can help investors make informed decisions when trading MXN.
Overall, the recent pullback in the Mexican Peso against the US Dollar highlights the importance of monitoring economic data and global events for potential impacts on currency movements. Investors should stay informed and adapt their strategies accordingly to navigate the ever-changing foreign exchange market.