- Mexican Bizo puts water after failing to scan support at 20.30.
- Mixed economic data in Mexico weighs the Mexican currency.
- Merchants are awaiting a monetary policy meeting in Pancico and Federal Reserve.
Mexican Bizo (MXN) recorded losses against the US dollar (USD) on Tuesday, but it is still the case in the following week for the delay in the US President (United States) Donald Trump on customs duties on Mexico, after discussions held with Mexican President Claudia Chenboma. Trading USD/MXN in 20.47, an increase of 0.74 %
The USD/MXN pair found strong support near the 20.30 area despite losing more than 1.30 % on Monday. Yesterday, the United States and Mexico reached an agreement to stop the customs tariffs a month from now, as President Xinbom was at risk to increase security on the border to stop the movement of drugs and illegal immigration.
Investors chanted news with an improvement in the risk appetite, and the Mexican currency ended in the Monday session.
In addition, the economic data in Mexico revealed that business confidence in January has improved, although commercial activity has contracted, according to the S & P Global. The manufacturing activity was contracted for the seventh month in January, indicating that the economy is slowing down.
Meanwhile, job opportunities in the United States have decreased by more than 14 months, according to US Department of Labor data. The data revealed that the labor and economy market are still strong, while maintaining the Federal Reserve (Fed) at least until June.
Looking at the background, more bullish trend is seen in the US dollar/MXN, although traders should be aware of the official speakers of the Federal Reserve during the rest of the day. In the first place per week, Banco de Mexico (banxico) is expected to reduce prices by Thursday.
Understanding is surrounded by the size of the pieces, as some central bank officials have opened the door for more than a quarter of a percentage of mitigation.
Daily Digest Market Movers: Mexican Peso on the defense of Greenback anti -attacks
- Business confidence in Mexico was slightly revealed from 52.0 in December to 51.4 in January, unveiled Instituto Nacional de ESTADISTICA Geographia E Informatica (INEGI). The sub -manufacturing component grew from 51.4 to 51.7 for the same period.
- The Global Information Managers Index for the manufacture of S&P in January decreased from 49.8 to 49.1, indicating that manufacturing activity slows down.
- “Mexican manufacturers began in 2025 on an equal footing, and they deepen the reduction mode as the current demand conditions and bleak expectations were paid to search for costs and protect cash flows,” said Pollyanna de Lima, Director of Economists at the S& P Global Market Intelligence, said:
- Pancico’s private economists survey showed that Mexico’s economy is expected to grow by 1 % in 2025, a decrease from 1.2 % in December. The inflation is expected to increase from 3.80 % to 3.83 %, while the basic prices are expected to be 3.74 %, up from 3.72 %.
- Economists estimate the exchange rate of the US dollar pair/MXN to end the year at 20.90, an increase of 20.53 in December, and estimates 150 basis points of mitigating Pancico.
- US jobs and Jolts in December decreased from 8.156 million to 7.6 million, less than 8 million.
- The prices of money in the future money market are prices in 48 basis points (BPS) of mitigation with federal reserve solutions in 2025.
Technical expectations USD/MXN: Peso Mexican weakens 20.50, as buyers target 20.90
Usd/MXN recovered after reaching a five -day lowest level from 20.39, as Trump stopped the customs tariff on Mexico. During the North American session, the exchange rate over the simple moving average increased for 50 days (SMA) of 20.42, and opened the door for more bullish direction.
The daily closure can pave the way for the psychological 20.50 psychological area to test the highest annual annual level of 20.90. If you go beyond, search for the highest level in the current year at 21.29.
On the contrary, if the USD/MXN sellers pay less than 20.30, it may decrease to SMA for 100 days at 20.15. Before the number 20.00.
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 it 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.
