Mexican Peso Forecast: Commodities Rally Boosts Peso s Appeal - Setups for MXN/JPY, USD/MXN
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Mexican Peso Outlook:
Amid a global commodity price boom in recent weeks, the Mexican Peso has benefited, achieving or nearing yearly highs versus the Japanese Yen and the US Dollar.
MXN/JPY rates are flagging after trading through multi-year downtrend resistance, suggesting a major turn may be arriving soon.
We can use the IG Client Sentiment Indexfor USD/CAD rates as a close proxy for USD/MXN exposure, which has a mixed bias.
Mexican Peso Retaining Strength
Throughout the month of April, the combination of stability in long-end global bond yields and a surge in global commodity prices, particularly agriculture and a subset of base metals, has provided a sturdy base from which the Mexican Peso has been able to rally. For the most part, price action remains in line with expectations outlined in our 1Q’21 Top Trade Opportunities and 2Q’21 Top Trade Opportunities. With s
Mexican Peso Forecast: MXN/JPY Breakout, USD/MXN Breakdown in Focus Advertisement
Mexican Peso Outlook:
Stability in long-end global bond yields has given room for risk appetite to return to markets, including in the emerging markets currency space.
MXN/JPY has traded to its yearly high and are now challenging a multi-year downtrend, while USD/MXN has dropped through its intrayearly uptrend, and a potential head and shoulders pattern may be guiding price action lower.
We can use the IG Client Sentiment Indexfor USD/CAD rates as a close proxy for USD/MXN exposure, which has a mixed bias.
Mexican Peso Continues to Gain Strength
Mexican Peso Forecast at Inflection Point - Levels for MXN/JPY, USD/MXN Advertisement
Mexican Peso Outlook:
Rising US Treasury yields have proved a nuisance to EM FX rates, with USD/MXN breaking through its pandemic downtrend and returning to the 61.8% Fibonacci retracement of its 2020 low/high range.
MXN/JPY rates, however, have proven rather resilient, and have rebounded from their pandemic uptrend and the 50% Fibonacci retracement of its 2020 high/low range.
We can use the IG Client Sentiment Index for USD/CAD rates as a close proxy for USD/MXN exposure, which has a mixed bias.
Mexican Peso Hampered by Rising Yields