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.

0

Notifications

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

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Low
High
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
Wall Street
Bearish
Low
High
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
Gold
Bearish
Low
High
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
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.76%, while traders in Germany 30 are at opposite extremes with 65.31%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/tF7NDRkMxh
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.56% Gold: 0.32% Silver: -0.08% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/oQYFEnQWXw
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/5Rb6Zace9V
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.34% 🇳🇿NZD: 0.21% 🇨🇦CAD: 0.08% 🇨🇭CHF: -0.06% 🇪🇺EUR: -0.12% 🇯🇵JPY: -0.15% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/Ksc3KraqP3
  • Indices Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Wall Street: -0.12% US 500: -0.20% France 40: -0.48% FTSE 100: -0.50% Germany 30: -0.54% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/u0DuzvS8In
  • Dow Jones, S&P 500 Perched at Key Support as Attention Turns to Powell - https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/euro_open/2021/03/04/Dow-Jones-SP-500-Perched-at-Key-Support-as-Attention-Turns-to-Powell.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $DJIA $SPX $ES $YM $DJI https://t.co/xon6vWNM7K
  • 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: https://t.co/Blrl0uF2Ct https://t.co/523qqvxg5j
  • Central banks often deem it necessary to intervene in the foreign exchange market to protect the value of their national currency. Learn how central bank intervention can impact your trading here: https://t.co/8G8mUX4so6 https://t.co/KG9k8BnyD6
  • Gold Price Forecast: Long-Term Yields May Keep XAU/USD on the Backfoot - https://t.co/YV1gkiTPrq #GOLD $GLD $XAUUSD https://t.co/oT1lIcChN6
  • 🇳🇱 Inflation Rate YoY (FEB) Actual: 1.8% Previous: 1.6% https://www.dailyfx.com/economic-calendar#2021-03-04
Peso Surges As Bank Of Mexico Announces FX Hedge Program

Peso Surges As Bank Of Mexico Announces FX Hedge Program

Christian Lewis, John Kicklighter,

Talking Points:

  • Peso climbed as much as 2.3% against the US Dollar after Mexico announces FX hedge program
  • FX commission has stated up to $20 billion for program, first auction March 6 for up to $1 billion
  • Hedges using derivatives set to reinforce peso without taping limited international reserves

See how retail traders are positioning in the majors using the DailyFX SSI readings on the sentiment page.

The Mexican Peso surged as much as 2.3 percent against the US Dollar to a three-month highs after the Bank of Mexico announced its plans for a ‘FX hedge’ program. According to Mexico’s Foreign Exchange Commission, the central bank is prepared to offer as much as $20 billion in foreign-exchange hedges, with the first auction set to take place on March 6 for up to $1 billion. Officials stated that the program is being brought in response to the high volatility around the USD/MXN exchange rate which they say does not reflect the fundamentals of the country.

Since the election of U.S. President Donald Trump, his vows on the campaign trail to renegotiate the existing free trade deal with Mexico and act with more aggressive programs, led the peso to plunge a further 20 percent to record lows against the US Dollar through the end of the year. As stated on the Bank of Mexico website, this intervention will make it possible for Mexico to hedge against FX risks, without using international reserves.

Over the past year, Banxico has attempted to stem the tide against its currency with rate hikes and direct intervention efforts to relatively limited effect. While the Mexican policy efforts are direct, the scale of the United States influence has proven difficult to cope with. There are still open threats of trade renegotiation, import taxes and the building of a physical wall between the US and Mexico (for which the former’s leader has stated the latter country will pay). The pressures are unlikely to dissipate for this exchange rate anytime soon.

Peso Surges As Bank Of Mexico Announces FX Hedge Program

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

DISCLOSURES