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
Bearish
Oil - US Crude
Mixed
Wall Street
Bullish
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
Bullish
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
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • 🇺🇸 Factory Orders MoM (OCT) Actual: 1.0% Expected: 0.8% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2020-12-04
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 93.89%, while traders in NZD/USD are at opposite extremes with 74.03%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/EIHwsqOtHo
  • Kudlow calls for extra $300 per week in unemployment benefits for several months $USD $SPY
  • Commodities Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.95% Silver: 0.78% Gold: 0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/RZ3wURW2R5
  • US NFP headline at 245k, notably missing expectations of 460k, while the prior reading had been revised lower to 610k from 638k. Get your #NFP update from @JMcQueenFX here:https://t.co/TwjhsvHRxC #JobsReport https://t.co/qSdJfdNHXT
  • Heads Up:🇺🇸 Fed Bowman Speech due at 15:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2020-12-04
  • Heads Up:🇺🇸 Factory Orders MoM (OCT) due at 15:00 GMT (15min) Expected: 0.8% Previous: 1.1% https://www.dailyfx.com/economic-calendar#2020-12-04
  • Global Times: Chinese Finance Minister had "constructive conversation” with EU Commission Economic VP on China-EU bilateral investment deal $EUR $CNY
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.64% France 40: 0.23% Wall Street: 0.21% US 500: 0.16% Germany 30: -0.07% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/e8R9WRIK8f
  • US employment (NFPs) fell short by more than 200K while Canadian jobs beat expectations by 42K. $USDCAD responds as would be expected - extending its 1.3000 break https://t.co/t8BDHOO7Am
USD/MXN Price Rips to All-Time High as Mexican Peso Collapses

USD/MXN Price Rips to All-Time High as Mexican Peso Collapses

2020-03-16 17:30:00
Rich Dvorak, Analyst
Share:

USD/MXN PRICE FORECAST: MEXICAN PESO PLUMMETS TO RECORD LOW AGAINST US DOLLAR

  • USD/MXN price action skyrocketed more than 5% intraday to its highest level on record
  • The Mexican Peso has crumbled alongside the crude oil price crash due to the subsequent strain exerted on state-owned Pemex
  • US Dollar dominance might endure and push spot USD/MXN higher amid the growing coronavirus pandemic and mounting recession risk

USD/MXN just exploded to a record high above the 23.000 handle as the Mexican Peso depreciates at its fastest rate against the US Dollar since October 2008. Spot USD/MXN prices spiked nearly 6% intraday from Friday’s close near the 21.800 mark. The latest move higher in this top emerging market currency pair is driven largely by another wave of risk-aversion as the coronavirus outbreak worsens.

Traits of Successful Traders
Traits of Successful Traders
Recommended by Rich Dvorak
Traits of Successful Traders
Get My Guide

USD/MXN PRICE CHART: MONTHLY TIME FRAME (MARCH 2008 TO MARCH 2020)

USDMXN Price Chart US Dollar Mexican Peso Forecast

Chart created by @RichDvorakFX with TradingView

The monumental climb in USD/MXN since mid-February, which accelerated shortly after I noted the Mexican Peso was pressing resistance last month and looked overdue for a reversal, has sent spot prices rocketing 22% higher. That said, there seems to be potential for the US Dollar to keep extending its ascent versus the Mexican Peso.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Forex for Beginners
Get My Guide

This is owing to the lack of technical resistance faced by USD/MXNafter the major EM FX pair blew past its 2017 peak near the 22.000 handle earlier today. Also, with concerns over the coronavirus pandemic and its cost to the global economy rising exponentially, demand for safe-haven currencies like the US Dollar could fuel further gains in spot USD/MXN.

USD/MXN PRICE CHART: WEEKLY TIME FRAME (SEPTEMBER 2017 TO MARCH 2020)

USDMXN Price Chart US Dollar Mexican Peso Forecast

Chart created by @RichDvorakFX with TradingView

USD/MXN price action could be overextended, however. This is considering spot USD/MXN is trading above the upper bound of its 3-standard deviation Bollinger Band ™. As such, a mean-reversion lower could be in the cards, perhaps for a test of resistance-turned-support around the January 2017 swing highs.

CHART OF MEXICAN PESO BOGGED DOWN BY CRUDE OIL PRICE CRASH

USDMXN Price Chart US Dollar Mexican Peso Forecast

Chart created by @RichDvorakFX with TradingView

Nevertheless, USD/MXN may keep churning broadly higher as the coronavirus pandemic festers and crude oil prices crash. The coronavirus outbreak and violent drop in crude oil has intensified recession risk, which could lead to credit downgrades that exacerbates recent Mexican Peso weakness and USD/MXN upside.

-- Written by Rich Dvorak, Junior Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES