Mexican Bizo drowns while Trump confirms the March tariff, and Bizo faces weekly losses
- USD/MXN rises by 0.22 % to 20.52 with a tariff concern for feelings.
- The commercial deficit of Mexico expands and expands the number of unemployment, which increases economic concerns.
- It can push Bancocko Dovish and USD/MXN.
The Mexican Bizo team (MXN) has prolonged its torment and ended against Greenback on Friday, to achieve weekly losses for more than 0.59 %, as the President of the United States (United States), Donald Trump, confirmed that the definitions of Mexico are moving forward on March 4.
The emerging market currency remains compressed by the American trade policies that will be enacted next week. The data of the current week of Mexico showed that the trade balance recorded a deficit in January, unlike surpluses in December. Meanwhile, the two unemployment rate increased, which can weigh economic growth.
Merchants continued to digest US President Trump’s tariff, saying that 25 % of duties on Mexico and Canada will start next week, along with an additional 10 % in China. Meanwhile, Mexican Minister of Economy Marcelo will meet with commercial actor Jameson Jarir on Thursday and Trade Minister Howard Lootnick on Friday.
Through the border, the inflation scale is preferred in the Federal Reserve (Fed), the PCE price index (PCE), which has been declining annually, indicating the progress of monthly and annual numbers.
Looking at the basic background, the USD/MXN pair can rise in the short term. Commercial policies, political policy, and Pancico Duvish’s position can be pushed to challenge the level of 21.00.
Cleveland stated that Beth Hamak’s feeding is that raising prices is not in the future view, adding that the potential economic impact of definitions and how it may affect monetary policy is not certain.
Daily Digest: Peso Mexican places water with the approaching tariff in Trump
- The peaso remains anomaly for discussions between Mexican officials and the United States in Washington.
- The Mexican trade balance witnessed a more clear deficit than $ 3.8 billion expected in January. It expanded to $ 4.55 billion after maintaining a surplus of $ 2.576 billion in December.
- The unemployment rate in Mexico increased by 2.7 % as expected in January, up from 2.4 % in December.
- The Personal Consumption Expenditure Expenses Index (PCE), the preferred inflation scale of the Fed Bank, increased by 0.3 % months over a month in January, and matching and accelerating the expectations from December. On an annual basis (YOY), Core PCE decreased to 2.6 %, a decrease from 2.9 % in December.
- The main inflation in the United States expanded by 2.5 % on an annual basis, in line with expectations but less than December 2.6 %. Monthly, unchanged at 0.3 %, as expected.
- Al -Makazat markets indicate that the Federal Reserve may reduce policy by 58 basis points, up from 70 basis points last week in 2025, through data from the CBOTO Trade Council (CBOT).
- Commercial conflicts between the United States and Mexico remain in the forefront and the center. Although countries have found a common ground in advance, US dollar traders/MXN should know that temporary suspension for 30 days is about to end, and tensions may lead to fluctuations in the husband during the rest of the week.
Technical expectations in US dollars/MXN: Mexican Peso is located with USD/MXN SMA obstacles for 50 days
USD/MXN maintains a bullish bias and a lounge over the simple moving average for 50 days (SMA) at 20.45 will pave the way to pay about 20.50. The RSI, which now exceeds 50, has reached its highest level in February, indicating a strong rise. Buyers will aim to scan the highest level on January 17, 20.93, followed by 21.00, and thirty (YTD) above 21.28.
On the negative side, failure to stick to SMA for 50 days can lead to a withdrawal of SMA for 100 days at 20.24. More weakness can be seen in a husband who breaks without this dynamic support, and may test the level of 20.00 psychological.
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.
