Currently, the sentiment in the MXN/USD market is estimated as bullish. In the last 30 days, the volatility of the MXN to MXN has been 2.49%. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Conversely, MXN tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens. 5-day, 10-day and 20-day moving averages are among the most commonly used indicators in the market to identify important resistance and support levels from a short term perspective. Meanwhile, the 50-day, 100-day and 200-day moving averages are often used to identify long-term support and resistance levels.
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Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. In addition to the simple moving average (SMA), traders also use another type of moving average called the exponential moving average (EMA). The EMA gives more weight to more recent prices, and therefore reacts more quickly to recent price action. If the pair’s price moves above any of these averages, it is generally seen as a bullish sign for stock. Conversely, a drop below an important moving average is usually interpreted as a negative forecast for the market.
Daily digest market movers: Mexican Peso on the front foot after judicial reform approval
Mexico’s political turmoil has faded, though the approval of the judicial reform is a certainty. Congresses in 32 states began the approval process, and once voted by a majority in 17 states, it will be declared a law. The next economic release comes on September 18, when INEGI will reveal Aggregate Demand and Private Spending data. Traders also like to use the RSI and Fibonacci retracement level indicators to try and ascertain the future direction of the exchange rate.
MXN to USD Forecast for Tomorrow
Here are the current predictions for the Mexican Peso to US Dollar exchange rate for longer time frames.
Macroeconomic blackbull markets review data releases are key to assess the state of the economy and can have an impact on the Mexican Peso (MXN) valuation. A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only does it attract more foreign investment but it may encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this strength comes together with elevated inflation. The European Central Bank is expected to cut key rates by 25 bps at the September policy meeting. ECB President Christine Lagarde’s presser and updated economic forecasts will be closely scrutinized for fresh policy cues. Macroeconomical and political events play an important role in the forex markets, as they can have a significant influence on exchange rates.
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This is despite the approval of an unwelcome judicial reform that foreign investors, banks and credit agencies opposed. After the latest consumer and producer inflation reports in the US, expectations for a 50-basis-point (bps) rate cut by the Federal Reserve (Fed) were trimmed. The chances for a 50 bps cut are 15%, while for a 25 bps cut they are 85%, via CME FedWatch Tool data. Another way of analyzing forex prices is through candlestick chart analysis. Some candlestick formations are seen as likely to forecast bullish price action, while others are seen as bearish. The Mexican Peso rallied sharply against the Greenback on Thursday following the approval of the judiciary reform on Tuesday.
Gold trades slightly below $2,570 after setting a new record-high of $2,573 earlier in the day. The benchmark 10-year US Treasury bond yield stays in negative territory below 3.7% as markets reassess the odds of a large Fed rate cut, helping XAU/USD hold its ground. The USD/MXN uptrend remains in place on Thursday despite the ongoing correction for the last two days. Momentum shifted negatively in the pair, as shown by the Relative Strength Index (RSI).
Moving averages are among the most popular forex prediction tools. As the name suggests, a moving average provides the average closing price for a forex pair over a selected time frame, which is divided into a number of periods of the same length. For example, a 12-day simple moving average is a sum of the closing prices over the last 12 days which is then divided by 12. Below is a forecast of Mexican Peso versus the U.S. dollar (USD/MXN) broken down by month.
- A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN.
- Momentum shifted negatively in the pair, as shown by the Relative Strength Index (RSI).
- This is despite the approval of an unwelcome judicial reform that foreign investors, banks and credit agencies opposed.
US economic data showed mixed readings, with an uptick axitrader review in factory inflation and soft jobs data. Forex traders use a variety of tools to make predictions on which way the market is likely to head next. The two main tools that forex traders use are technical analysis and fundamental analysis. MXN/USD is currently a buy as the exchange rate is forecasted to increase by 0.97% in the next 24 hours.
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MXN to USD Forecast for Tomorrow, This Week, and Next Week
This forecast is produced based on prior values of the USD/MXN along with other currency exchange rates. To learn more about how this forecast is produced, please see our methodology page. The main objective of Mexico’s central bank, also known as Banxico, is to maintain inflation at low and stable levels (at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%). To this end, the bank sets an appropriate level of interest rates. When inflation is too high, Banxico will attempt to tame it by raising interest rates, making it more expensive for households and businesses to borrow money, thus cooling demand and the overall economy.
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