- The Mexican Bezo weakened 0.14 %, as the late morale and the profit spare apply to the decision of the Federal Reserve Policy.
- American data is mixed, with strong industrial production but weak housing numbers, while Trump’s commercial speech overwhelms economic publications.
- The economic slowdown in Mexico in focus, with total demand and private spending data due before Pancico’s meeting on March 27.
The Mexican Peso (MXN) lost some reasons against the US dollar (US dollar) on Tuesday as a measure of merchants of the FBI’s monetary policy decision (USA) on Wednesday. Data was mixed from the United States, although it was overwhelmed by US President Donald Trump’s speech. USD/MXN is traded at 19,94, an increase of 0.14 %.
The market mood became pessimistic as investors seemed to book profits before the Federal Reserve meeting. Participants expect the Federal Reserve will remain on whether it will rely on or believe its expectations in the summary of economic projections (SEP).
Earlier, data from the United States revealed that industrial production had improved, but housing data has been mixed. However, the main driver remains Trump’s policies and geopolitical developments.
In Mexico, Instituto NACIONAL De EstadíSTICA GEOGRAFíA E Informatica (INEGI) will version of the total request for order and private spending data, every Wednesday and Thursday. This may clarify the depth of the constant slowdown in the economy of Mexico a week before the Panco de Mexico (Pancico).
Daily Digest Market Movers: Mexican Peso Trims Monday Monits before the Federal Reserve meeting
- The Organization of Economic Cooperation and Development (OECD) has claimed that US President Donald Trump’s tariff for Mexican products can stimulate the recession in Mexico.
- OECD has updated its expectations, which includes a 25 % tariff applied to most goods as of April. The Organization for Economic Cooperation and Development Project that the Mexican economy will be severely affected, and it shrinks by 1.3 % in 2025 and 0.6 % next year.
- Last Wednesday, Mexican Finance Minister Edgar Amadur Zamora said that the national economy is expanding, but it shows signs of slowdown related to commercial tensions with the United States.
- American industrial production grew by 0.7 % in February, outperforming expectations by 0.2 % and accelerating 0.3 % in January, driven by car production.
- Housing data provided a mixed photo. Building permits decreased by 1.2 %, decreasing from 1.473 million to 1.456 million. However, the number of housing increased by 11.2 %, increasing from 1.35 million to 1.501 million, indicating a stronger construction activity.
- At the price of the money market at 61 basis points of mitigation by the Federal Reserve in 2025, which sent us the treasury returns that drown next to the American currency.
USD/MXN Expectations: Mexican Bizo is retreating where USD/MXN climbs above 19.90
USD/MXN records the gains of phosios, however the strange pair remains less than 20.00, indicating that there is a negative aspect more vision. The price of “Doji Doji”, which implicitly means that the bears are responsible. RSI in the Habboudia area, but the hints of buyers stopped the downtown direction near the range of 19.90 – 20.00.
A 19.90 violation would exacerbate a decrease in a simple moving average for 200 days (SMA) in 19.65. Once exposed, the following main support levels will be 19.50, 19.00, and August 20, 2024 low at 18.64.
On the contrary, if the pharmaceutical gatherings/MXN after 20.00, this would remove the path to the SMA test for 100 days in 20.35.
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 manufacturing capabilities and supply supply chains near their countries of origin – is a motivation for the Mexican currency as the country is a 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.
