The dollar/MXN returns to approximately 20.50 with the Mexican Peso scanning some gains
- UsD/MXN recovers nearly 20.50, where the Mexican Peso abandons some of the gains that were driven to delay the imposition of a tariff on Mexico by US President Trump.
- The call for the safe infiltration of the US dollar, as investors expect that the agenda of Trump’s tariff will be less fearful than expected.
- Investors are waiting for Jolts job opening data in the United States, which will show the current status of employment.
The pair of the dollar/MXN bounces to approximately $ 20.50 in a European Tuesday session after Nospeeniving from the highest level from 21.29 on Monday. The couple acquires that the Mexican Bezo abandons some of the gains that were inspired by the President’s decision to the United States, Donald Trump, to postpone his orders to impose a 25 % tariff on Mexico and Canada.
President Trump delayed his identification plans for Mexico after he agreed to support the United States to restrict drug traffic and immigrants not documented to their economy. In a way to avoid customs tariffs, Mexican President Claudia Shinbom took the matter seriously and supported Trump’s agenda to tighten immigration controls by sending 10,000 soldiers to the border. The event also gathered the risk of economic damage to the Mexican economy at the present time.
Meanwhile, investors expect that the Trump tariff agenda is just a tool for a dominant position in negotiations with commercial partners in the United States, which reduced the safe risk of US dollar (USD). The US dollar faces sharp pressure in every attempt to revive the two, with the US dollar index trading with a caution with about 108.40.
To move forward, the main operator of the US dollar will be the Jolts Jolts opening data for December, which will be published at 15:00. Economic data will show the current status of employment. Economists expect that employers have deployed 8 million new jobs, marginally less than about 8.10 million in November.
Investors will pay close attention to job opportunities, as it will affect the market expectations for Federal Reserve Monetary Policy expectations (Fed).
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 it may encourage the Bank of Mexico (Pancico) to increase interest rates, especially if this force is compatible with 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.
