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Mexican Peso Forecast: Muddling Through Weak Data – Setups in MXN/JPY, USD/MXN

Mexican Peso Forecast: Muddling Through Weak Data – Setups in MXN/JPY, USD/MXN
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Mexican Peso Forecast: USD/MXN Balance of Risks Appears Tilted to the Downside

Mexican Peso Forecast: USD/MXN Balance of Risks Appears Tilted to the Downside 2021-06-27 07:00:00 Diego Colman, Market Analyst USD/MXN FORECAST: MILDLY BEARISH Banxico’s rate hike surprise may help consolidate expectations that a tightening cycle has started Positive risk-sentiment and an attractive carry are likely to benefit the Mexican peso Advertisement There are not many of relevant risk events in Mexico’s economic calendar next week. The June manufacturing PMI, to be published on July 1st, will likely receive some scrutiny, but the future path of Banxico’s monetary policy, in light of its recent rate hike surprise, and the NFP release in the U.S. will dominate market discussion and set the tone for USD/MXN price action.

Mexican Peso Forecast: Waters Turn Murkier for the Dollar, USD/MXN Remains Vulnerable

Mexican Peso Forecast: Bulls Struggling to Find Follow-Through - Setups for MXN/JPY, USD/MXN

Mexican Peso Forecast: Commodities Rally Boosts Peso s Appeal - Setups for MXN/JPY, USD/MXN

Mexican Peso Forecast: Commodities Rally Boosts Peso s Appeal - Setups for MXN/JPY, USD/MXN Advertisement 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

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