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.

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
More View more
Real Time News
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here: https://t.co/lgDf5ddzFV https://t.co/8GJ6OQYgnW
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 here: https://t.co/ZKHGXeVhsR https://t.co/QSltMQml6N
  • 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: https://t.co/kODPAfJE79 https://t.co/DSp7f3YuAx
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/HNqHcbL6vk
  • The US Dollar continues to push higher against ASEAN currencies after the FOMC rate decision. This leaves the USD/SGD, USD/THB, USD/PHP and USD/IDR outlook mostly tilted higher. Get your market update from @ddubrovskyFX here:https://t.co/zn56iTFBxM https://t.co/FbepD4RaFg
  • The US Dollar seems to be back on the offensive against its major counterparts, pressuring EUR/USD and NZD/USD lower as USD/JPY consolidates. USD/CHF surges past key resistance. Get your market update from @ddubrovskyFX here:https://t.co/MrLGSp7FYa https://t.co/XS0176LyOg
  • The Japanese Yen remains in focus with strength potential on risk aversion themes to go along with weakness on themes around higher rates. Get your weekly $JPY technical forecast from @JStanleyFX here: https://t.co/l4UICqJzJy https://t.co/dQ2pS0E4fp
  • Google finance-related search interest in 'Evergrande' has almost overtaken 'Covid'. 'Taper' doesn't even register on the scale https://t.co/P6H9sHFVIB
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
USD/MXN: US Dollar to Mexican Peso Resumes Surge as Oil Plunges

USD/MXN: US Dollar to Mexican Peso Resumes Surge as Oil Plunges

Rich Dvorak, Analyst

US DOLLAR TO MEXICAN PESO FORECAST: USD/MXN PRICE RESUMES EXPLOSIVE BREAKOUT AS OIL ROUT DEEPENS

  • USD/MXN price action has skyrocketed 6% since Thursday’s trading session as crude oil continues to bleed lower
  • The Mexican Peso could come under further selling pressure and push USD/MXN back above the 25.000 handle
  • Spot USD/MXN remains about 5% below its recent swing high following the recent US Dollar pullback

USD/MXN has gained roughly 4% so far on Monday to trade back above the 24.000 price. The latest surge in the US Dollar relative to the Mexican Peso – a top emerging market currency pair – mirrors another plunge in crude oil.

USD/MXN & CRUDE OIL PRICE CHART: 4-HOUR TIME FRAME (19 FEBRUARY TO 30 MARCH 2020)

USDMXN Price Chart Crude Oil Correlation

Chart created by @RichDvorakFX with TradingView

Since Thursday, spot USD/MXN price action has climbed by more than 6% while crude oil has crumbled about 20% from their respective intraday low and high. A strong inverse relationship between USD/MXN and crude oil has been observable throughout most of the year, which will likely continue over the short and medium term considering the macroeconomic backdrop.

USD/MXN PRICE CHART: 4-HOUR TIME FRAME (28 FEBRUARY TO 30 MARCH 2020)

USDMXN Price Chart US Dollar to Mexican Peso Forecast

That said, a healthy pullback in the US Dollar to Mexican Peso could be over as USD/MXN looks to extend its parabolic climb. This follows a support bounce off the 23.000 price mark – a technical level of confluence coinciding with the 38.2% Fibonnaci retracement of the month-to-date trading range recorded by USD/MXN.

Read More – Stock Market Forecast: Recession Likely Unavoidable Amid Virus Fallout

-- 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