USD/MXN refers to the US Dollar/ Mexican Peso currency pair. USD/MXN is an exotic pair, as Mexico is considered a developing economy, and it is being traded against a major currency....
The USD/MXN pair can be traded in the US from Sunday evening until Friday afternoon though trading volume and levels of volatility vary greatly. In general, morning hours present the best time to trade the Mexican Peso as this period includes the release of US economic data (8.30-10 am ET) and it is the window of greatest activity. Mexican peso trading hours also follow US equity and futures exchange hours. Mexico’s natural resources make it a commodity-based currency. It is a top-15 producer of oil, and the value of the MXN is strongly influenced by oil and gas price fluctuations and any other economic indicators impacting energy futures markets, such as the US Oil Inventory report. Moreover, the Mexican peso is interdependent with the Colombian peso (COP) and the Brazilian real (BRL), both of which are heavily reliant on petroleum exports. The USD/MXN currency pair is impacted by events occurring both in Mexico and the US. The two countries’ economic policies are correlated, with Banco de México frequently announcing decisions close on the heels of US Federal Reserve announcements.
USD/MXN attempted an early Thursday rally but remains under steady downward pressure. With resistance near 18.50, a supportive rate differential for the peso, and strong US-driven Mexican exports, the pair continues to favor a grind lower.
The US dollar has rallied a bit during the trading session here on Friday as we are approaching the 18.50 pesos level. This is an area that previously had been support, so it does make a certain amount of sense that it ends up being resistant as market memory comes into the picture. The 50 day EMA is sitting right around that area as well. And of course we have a downtrend line. So, it all ties in together quite nicely to offer resistance. Because of this, I will be looking forward to seeing if we get signs of exhaustion because that would be probably one of the better signs that you can get. Although obviously nothing is 100 % accurate, it is an area that you would expect to see it. If we can break above the 18.8 level, which probably takes a couple of days’ worth of pressure, then the US dollar probably rallies quite significantly against the Mexican peso.
The USD/MXN is near the 18.45775 mark as of this writing, but traders need to take a look at the wide spreads in the currency pair before venturing forth with a speculative position today.
The US dollar rose against the Mexican peso during trading on Tuesday, but what could be thought of as somewhat quiet and sideways trading. This does make a certain amount of sense, as there are a lot of questions about the US economy, and of course we have the US government shut down. Remember, Mexico is highly levered to the United States, as it is the world’s largest exporter to the world’s largest economy. While most people think about China in that prism, the reality is that Mexico is a much bigger exporter, at least as far as the Americans are concerned.
The US dollar has rallied a bit during the trading session here on Monday, showing signs of strength yet again. However, we did find a bit of difficulty at the 18.5 MXN level, which is an area that is starting to become very familiar for traders. It was previously significant support, and now it is offering significant resistance. By doing so, it looks like the market is going to continue to be very noisy and very cognizant of this area, so I think you need to pay close attention to 18.5 MXN going forward, as it has already proven itself multiple times, and now we have a massive downtrend line as well as the 50 Day EMA hanging around the same area.
The U.S. dollar has been a bit choppy against the Mexican peso during the trading session on Friday as we continue to just grind sideways overall. This is a market that, course, is paying attention to a lot of different things at the moment, not the least of which would be the U.S. government shutdown. However, really, when you look at the longer term picture, you see that the US dollar had skyrocketed back in the middle of April of 2024, extending from the 16.3 level all the way to the 21.3 level before pulling back. With that being the case, we find ourselves sitting just above the 61.8 % Fibonacci retracement level. And therefore, some technical traders will be watching this. The 18.20 Mexican pesos level for me is important because if we break down below there, typically I start aiming for a complete turnaround of the Fibonacci level, meaning we could drop all the way back down to the bottom. Short-term rallies will face some problems with 18.5 pesos and the 50-day EMA at the 18.57 level, which is dropping.
USD/MXN tests 18.50 resistance with 50-day EMA and trendline overhead. Failure favors downside toward 18.20, but risk-off flows could spark upside.
USD/MXN traders saw long-term lows approached in the currency pair late last week, but a sudden reversal upwards early this morning occured as holiday trading
The USD/MXN has continued to show an ability to traverse to lower values, but day traders should not get over confident because intraday volatility remains
USD/MXN falls under 19.50. Traders target 19.00 as Mexico gains on trade hopes and favorable interest rate spread.
The US dollar has been somewhat positive in the early hours of Friday against the Mexican peso. And then basically just sat there.
The U.S. dollar has initially fallen a bit against the Mexican peso but has since turned around to show signs of life. By doing so, the market has bounced off of the crucial 50 day EMA, which of course is an indicator that a lot of people will be watching closely.
USD/MXN: As the US dollar bounces between 20 and 21 pesos, volatility is on the horizon and a potential upside, as traders wait for the US to levy tariffs on Mexico and the market to respond.
USD/MXN: Choppy markets, as Trump turns up the heat with tariff threats on Mexico. This is a market that will continue to look at the region between 20 MXN and 21 MXN as a major barrier
USD/MXN: The peso is in a holding pattern as we wait to see how aggressive Trumps Mexico policy will be
