News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • - Unreal atmosphere - Shame about the result, but no complaints - Usyk masterclass - Heavyweight division blown wide open
  • The USD could still rally a bit from here, but has resistance not far ahead that it will need to overcome if it is to extend to a larger degree. Get your weekly $USD technical forecast from @PaulRobinsonFX here:
  • When it comes to buying and selling forex, traders have unique styles and approaches. Learn about buying and selling forex here:
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here:
  • What is your forex trading style? Take the quiz and find out:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • The results of this weekend’s German Federal Election will likely dominate Euro sentiment at the start of the week ahead but after a possible EUR/USD bounce they will have little long-term impact. Get your weekly $EUR forecast from @MartinSEssex here:
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Sterling continues to contract into trend extremes and the focus is on a pending breakout in the weeks ahead. Get your weekly $GBP technical forecast from @MBForex here:
Mexican Peso Outlook: How Will USD/MXN React to the Jackson Hole Summit?

Mexican Peso Outlook: How Will USD/MXN React to the Jackson Hole Summit?

Diego Colman, Market Analyst


  • The Federal Reserve will hold the second part of its Jackson Hole summit on Friday
  • Chairman Jerome Powell is slated to make remarks at 10 am ET as part the virtual economic symposium
  • If the U.S. central bank sticks to the dovish script and slow-walks its taper plans, there is room for Mexican peso appreciation in the final stretch of the month

Most read: Mexican Peso Muddles Through Weak Data – Setups in MXN/JPY, USD/MXN

The Mexican peso weakened against the U.S. dollar on Thursday on widespread risk-off mood (USD/MXN: +0.55% to 20.35), losing ground for two consecutive days just ahead of a key market event on Friday: the FOMC chairman's speech at the Jackson Hole Symposium. Jerome Powell, who is scheduled to deliver remarks at 10 am ET, will try to balance conflicting forces in the economy: high inflation and slowing economic growth at a time when delta-variant concerns are dampening consumer confidence and household spending.

Regardless of what Powell says, volatility in EMFX could increase and remain elevated in the coming days as traders adjust their portfolios to reflect the Fed’s updated narrative. That said, the Mexican peso, being a high-beta currency, could suffer considerable losses if the summit triggers a disorderly rout in US Treasuries and yields rise, but should be one of the preferred currencies if the Fed sticks to the dovish script and risk assets rally.

Given that the US economy appears to be losing steam, Powell may be inclined to embrace patience and avoid providing major updates on the “quantitative easing exit strategy”. Any effort to slow-walk taper plans will weigh on the US dollar and act as a bullish catalyst for higher-yielding currencies, at least in the very near term. Needless to say, this scenario could push USD/MXN below the psychological 20.00 mark in the final stretch of the month.

Although less likely, there is a very small chance that Powell could attempt to prime investors for a tapering announcement at the next FOMC meeting in September as some policy makers grow more uncomfortable with lax monetary policy in the midst of high inflation. Any sign that the central bank is moving in that direction could be quite disruptive to markets and trigger a large sell-off in risk assets. Under this assumption, USD/MXN could explode higher and easily retest its June’s high in the 20.75 area.


If USD/MXN reverses lower on its way to the weekeend after two days of gains, the first technical support appears at 20.20/20.10, where the August 25 low converges with the 200-day moving average. If sellers manage to push price below this critical floor, there would be scope for a move towards 19.80 in the short-term. Alternatively, if bulls retain control of the market and push the exchange rate above the 20.45/20.50 resistance area, the June high at 20.75 would become the immediate upside focus.




---Written by Diego Colman, DailyFX Market Strategist

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.