- The Mexican peaso rises where USD/MXN decreases by 1.14 % in the weakest US dollar.
- Trump and Shenbum describes the call as “very fruitful”, which enhances feelings and reduces the risk of tariffs in the short term.
- It weakens the US dollar as Trump criticizes the late discounts of federalism, noting that the prices of oil and groceries are low.
The Mexican Pizo gathered against the US dollar on Thursday after US President Donald Trump and Mexican President Claudia Shinbaum made a phone call that both said “very fruitful.” This and the weakest Greenback sent the US dollar/MXN decrease to some extent, and the exchange of hands at 19.69, a decrease of 1.14 %.
Trading in Mexico is closed to monitor Easter holidays. Although the economic list in Mexico remained absent this week, it will collect traction next week by issuing retail sales, inflation in the middle of the month in April, and economic activity data.
To date, Mexico has escaped from the additional customs tariffs that have already been imposed since March 4, when Trump has provided 25 % duties on most imports, including steel, aluminum, cars and car parts. On April 14, the White House decided to apply a 21 % tariff to tomatoes.
Through the border, US President Trump complained of the US Federal Reserve Chairman (Federal Reserve) Jerome Powell, saying that the Federal Reserve Bank was “very late” to reduce interest rates due to low oil and groceries.
American job data and construction permits are better than expected. On the contrary, housing begins, indicating that housing construction slows down.
In Dockket, Mexico will include retail sales, inflation in the middle of the month for April, and economic activity for February until next week.
Daily Digest Market Movers: Mexican Peso offers in the midst of the absent economic list
- Also, Governor Victoria Rodriguez Sija said, Panco de Mexico (Pancico) is ready to continue to reduce politics. However, the slowdown in retail sales and the most enlarged inflation numbers would justify the reduction of the interest rate in Pancico 50-Basis at the May meeting.
- The economic activity index in Mexico, which displays the monthly growth numbers, will confirm the decision of Pancico. In January, the activity was contracted by -0.2 % on a monthly basis and -0.1 % on an annual basis.
- If the data comes in the most softening, Pancico can reduce the rates as expected, which reduces the differential interest rate between Mexico and the United States. Although it must be positive for the US dollar, sending the US dollar/MXN to a rally, uncertainty in the markets, and traders who give up the US dollar can weaken the bullish trend of the strange husband.
- The demands of the unemployed for the American initial work for the week ended in April 12, 215 kilos, a decrease from 224 thousand and under the expectations of 225 thousand – an encouraging mark of the labor market.
- American construction permits increased by 1.6 %, from 1.459 million to 1.482 million, overcoming 1.45 million expectations. However, housing begins disappointed, as it sharply decreased from 1.494 million to 1.324 million, indicating weakness in housing construction activity.
- The price of the players in the money market was 86 basis points from the reduction of the Federal Reserve at the end of 2025. It is expected to be the first discount in July.
Technical expectations in US dollars/MXN: Mexican Peso Business where the US dollar/MXN decreased to less than 200 days SMA
USD/MXN accumulates doubtful with sellers who send the husband to be drifted to below No. 20.00 and a simple moving average for 200 days (SMA) of 19.87. The RSI (RSI) index has turned into a decline, so the additional assertion of the daily closure under SMA for 200 days would pave the way for a challenge of 19.50. In this result, the next support will be 19.00.
On the contrary, if buyers pay the USD/MXN exchange rate over 20.00, this door may open to test the highest level on April 14, 20.29, which will open the door to SMA meeting for 50 days and 100 days near 20.29-20.35, followed by a resistance of 20.50.
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.
