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
Wall Street
Bearish
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Heads Up:💶 Inflation Rate MoM Final (DEC) due at 10:00 GMT (15min) Expected: 0.3% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-01-20
  • Heads Up:💶 Inflation Rate YoY Final (DEC) due at 10:00 GMT (15min) Expected: -0.3% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2021-01-20
  • Heads Up:💶 Core Inflation Rate YoY Final (DEC) due at 10:00 GMT (15min) Expected: 0.2% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2021-01-20
  • The bull flag pattern is a great pattern to add to a forex trader's technical arsenal. Explosive moves are often associated with the bull flag. Learn more about the bull flag pattern here: https://t.co/yOEvLjKnct https://t.co/CkPKuAlYDg
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in EUR/JPY are at opposite extremes with 64.02%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/VKwIDerxAw
  • EURGBP nearing important support..#eurgbp #sterling #euro @DailyFX https://t.co/ACzwvvGcrh
  • Commodities Update: As of 08:00, these are your best and worst performers based on the London trading schedule: Silver: 1.21% Oil - US Crude: 1.16% Gold: 0.80% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KSEV9lQm80
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/00ZSODsTkS
  • Forex Update: As of 08:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.48% 🇳🇿NZD: 0.27% 🇨🇦CAD: 0.25% 🇨🇭CHF: 0.16% 🇪🇺EUR: 0.13% 🇯🇵JPY: 0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/PSljPLQbhH
  • 🇿🇦 Inflation Rate YoY (DEC) Actual: 3.1% Expected: 3.1% Previous: 3.2% https://www.dailyfx.com/economic-calendar#2021-01-20
USD/MXN Forecast: US Dollar to Mexican Peso Extends Parabolic Climb

USD/MXN Forecast: US Dollar to Mexican Peso Extends Parabolic Climb

Rich Dvorak, Analyst

USD/MXN PRICE FORECAST: US DOLLAR TO MEXICAN PESO BREAKOUT GOES VERTICAL

  • USD/MXN eclipsed the 25.000 price as the Mexican Peso plunged further against the US Dollar after Banxico slashed benchmark interest rates to match recent FOMC action
  • Spot USD/MXN is trading at record high readings largely due to the crude oil price war and coronavirus pandemic
  • The US Dollar might appear overextended versus the Mexican Peso, but USD/MXN could continue pressing higher while recession risk looms

The US Dollar has recorded a staggering 30% surge against the Mexican Peso since USD/MXN bottomed out mid-February around the 18.500 price. Spot USD/MXN now trades well above the 25.000 handle as the Mexican Peso, a top emerging market currency, crumbles as the US Dollar, a popular safe-haven currency, skyrockets.

Top Trading Opportunities in 2021
Top Trading Opportunities in 2021
Recommended by Rich Dvorak
Check out our latest Top Trading Opportunities
Get My Guide

USD/MXN PIERCES 25.000 PRICE AS MEXICAN PESO IMPLODES VS US DOLLAR

USDMXN Price Chart US Dollar to Mexican Peso Technical Analysis

USD/MXN has staged a confounding rebound over the last few weeks since the most liquid and heavily traded EM FX pair notched a 16-month low in early February. In fact, USD/MXN is currently trading at its highest reading on record.

Forex for Beginners
Forex for Beginners
Recommended by Rich Dvorak
Discover the basics of forex trading
Get My Guide

The monumental rise in USD/MXN might seem a bit overextended, however, considering spot prices are pressing technical resistance presented by the 3-standard deviation Bollinger Band upper barrier. Also, USD/MXN might gravitate back lower around technical confluence underscored by the 161.8% Fibonacci extension of the January 2017 to July 2017 bearish leg.

USD/MXN PRICE SURGE FOLLOWS PLUNGE IN CRUDE OIL & RISE IN RECESSION RISK AMID CORONAVIRUS PANDEMIC

USDMXN Price Chart Crude Oil Correlation Mexican Peso

Chart created by @RichDvorakFX with TradingView

That said, fundamental drivers like the crude oil price war and rise in recession risk could continue fueling the parabolic climb in USD/MXN. The Mexican Peso, which is closely tied to the price of oil, has crumbled as the collapse in crude oil pressures Pemex – Mexico’s state-owned oil company.

Introduction to Forex News Trading
Introduction to Forex News Trading
Recommended by Rich Dvorak
Learn how to analyze and react to market news in real-time
Get My Guide

At the same time, extremely high readings of FX volatility have largely bolstered the US Dollar as coronavirus concerns plague market sentiment.

USD/MXN PRICE CHART: 4-HOUR TIME FRAME (FEBRUARY 27 TO MARCH 23, 2020)

USD MXN Price Chart US Dollar to Mexican Peso Forecast

As such, USD/MXN has potential to keep churning higher within its upward-sloping bullish channel extended through the ongoing series of higher highs and higher lows. Also, the 9-period and 34-period exponential moving averages on the 4-hour USD/MXN price chart reveal the short-term and medium-term uptrend, which could continue supporting the US Dollar relative to the Mexican Peso.

-- 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