Skip to Content
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
More View More
Mexican Peso Latest: USD/MXN at Risk as FOMC and Mexican Q2 GDP Releases Near

Mexican Peso Latest: USD/MXN at Risk as FOMC and Mexican Q2 GDP Releases Near

Nick Cawley, Senior Strategist
What's on this page

Mexican Peso (USD/MXN) Price, Analysis and Chart:

  • USD/MXN breaks through support.
  • FOMC decision and Mexican Q2 GDP this week’s drivers.
Top Trading Lessons
Top Trading Lessons
Recommended by Nick Cawley
Find Out the No.1 Mistake Traders Make
Get My Guide

USD/MXN Eyes a Fresh Six-Week Low

The latest Federal Reserve policy decision and the first look at Mexican Q2 GDP will steer USD/MXN in the near-term, with both sides of the pair getting a strong fundamental driver. The Fed is expected to leave all policy levers untouched but deliver a dovish message, while Mexican GDP figures, released on Thursday, will likely show a sharp contraction in economic activity in the second quarter.

For all market moving economic data and events see the DailyFX Calendar.

The technical backdrop for USD/MXN still suggests lower prices ahead, but with one notable caveat. The downturn since the start of this month has been slow and consistent with last Friday’s fall below both the 20- and 50-day moving averages adding momentum to the move. This move saw the pair break the 50% Fibonacci retracement level at 22.153 and as such leaves a cluster of three potential supportive levels at risk. The 200-dma sits at 21.52, the mid-June multi-month low is at 21.424 and the 61.8% Fibonacci retracement stands at 21.296. The caveat noted above, and an indicator that may temper any short-term move lower, is the extreme oversold condition of the pair highlighted by the Commodity Channel Indicator (CCI). A cluster of old lows, Monday’s high and the 20- and 50-dmas up to 22.400 may prove difficult to break in the short-term.

If you are interested in technical analysis, please see our updated Education Centre for a comprehensive range of indicators and analytical articles.

USD/MXN Daily Price Chart (December 2019 – July 29, 2020)

How to Use IG Client Sentiment in Your Trading
How to Use IG Client Sentiment in Your Trading
Recommended by Nick Cawley
How are Retail Traders Positioned at the Moment?
Get My Guide

Traders may be interested in two of our trading guides – Traits of Successful Traders and Top Trading Lessons – while technical analysts are likely to be interested in our latest Elliott Wave Guide.

What is your view on USD/MXN – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

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