- Mexican bizo shows flexibility although US tariffs are 25 % on steel and aluminum specified on March 12.
- The latest Federal Reserve Chairman Jerome Powell’s comments emphasize a less restricted political position, which confirms the economic power.
- Industrial production is deteriorating in Mexico, but Bizo benefits from market dynamics despite the tilt of Pancico.
The Mexican Biso (MXN) is still stable against Greenback on Tuesday after the Monday’s session was completed with 0.35 % losses. However, he monitors Odeh, as the US President (United States), Donald Trump, imposes a 25 % tariff on Mexican steel and aluminum, is expected to be valid on March 12. , 0.23 % decreased, after reaching a 20.65 -day increase.
Jerome Powell, Federal Chairman (Fed), has expressed the wires to this lines. He said that the federal reserve policy position is less restricted than it was, adding that the economy is still strong and that “we do not need to be in a hurry to control our position on politics.”
Powell repeated that monetary policy is in a good place and the United States is not in a stagnation.
In Mexico, industrial production continued to deteriorate in December, with a highlight of the country’s economic slowdown. Despite this and the Banco de Mexico (banxico) approach, the bizo extends its gains.
Before this week, American economy economy will display inflation numbers in the United States and the side of the product, along with more federal reserve speakers.
Digest Market Mark: Mexican Bizo brushes aside definition fears and rise
- Industrial production in Mexico (IP) decreased in December -1.4 % illiterate, less than the -0.5 % contraction expected by economists. In the twelve months to December, IP decreased by -2.7 %, shrinking more than November -1.4 %.
- On Monday, the governor of Pancico Victoria Rodriguez Sija Duvish and revealed that the central bank could reduce the same size as in February, adding that the task of bringing inflation to a 3 % goal is not over.
- Rodriguez added that Pancico is still interested in what might happen in March after the 30 -day allowance of Trump.
- Peth Hamak, head of the Federal Reserve at Cleveland, commented that she prefers to keep stability for some time so that the Federal Reserve can evaluate the economy. She added that this policy is “modestly restricted” and stressed that it is unclear whether inflation will continue to move towards the goal of the Federal Reserve by 2 %.
- Commercial conflicts between the United States and Mexico remain in the boiler room. Although countries have previously found a common ground, US dollar traders/MXN should know that there is a temporary stop for 30 days and that tensions may arise at the end of February.
- Pricing money in the money money market in 38.5 basis points (BPS) from mitigation by the Federal Reserve in 2025.
Technical expectations in US dollars/MXN: Mexican Bezo to survive are linked to the term
The USD/MXN Uptrend pair remains intact, but the procedure that wins its price on Tuesday shows the elasticity of the emerging market currency. During the past four days, the husband remained in the region from 20.30 to 20.70, with a slightly momentum to the upward trend, as shown in the RSI.
To get a bullish continuation, buyers need to restore 20.70 before challenging the highest level on January 17 at 20.90. Once it is over, the next station will be 21.00, followed by one year to another (YTD) in 21.29. On the other hand, sellers lead the exchange rate without a simple moving average for 50 days (SMA) at 20.54, and the pair will prepare for the test 20.00, but the first bears need to wipe SMA for 100 days at 20.22.
Common questions between Mexican Peso
The Mexican Bezo (MXN) is the most circulating currency among its peers in Latin America. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even the levels of transfers sent by Mexicans who live abroad, especially in the United States. Geopolitical trends can also move MXN: for example, the proximity process – or the decision of some companies to transfer the manufacturing capacity and supply supply chains near its countries of origin – is an incentive for the Mexican currency as the country is the main manufacturing center in the American continent. Another MXN catalyst is oil prices because Mexico is a major source of commodity.
The main goal of the central bank in Mexico, also known as Pancico, is to maintain inflation at low and stable levels (in or near its 3 % target, the center point in the range of tolerance between 2 % and 4 %). To this end, the bank determines an appropriate level of interest rates. When inflation is very high, BancicPico will try to tame it by raising interest rates, making them more expensive for families and companies to borrow money, thus cooling demand and macroeconomic economy. The highest interest rates are generally positive for Mexican Peso (MXN) because it leads to higher returns, making the country a more attractive place for investors. On the contrary, low interest rates tend to weaken MXN.
The total economy data is a key to assessing the state of the economy and can have an impact on the Mexican PESO (MXN) evaluation. The strong Mexican economy, based on high economic growth, is a decrease in unemployment and high confidence, useful for MXN. It not only attracts more foreign investments, but may also encourage the Bank of Mexico to increase interest rates, especially if this force corresponds to high inflation. However, if economic data is weak, MXN is likely to decrease.
As a currency of the emerging market, the Mexican Biso (MXN) tends to strive during risk periods, or when investors see the wider market risk low and thus yearn to communicate with investments that bear greater risks. On the contrary, MXN tends to be weak in times of turmoil in the market or economic uncertainty where investors tend to sell high -risk assets and flee to the most resigned safe havens.
