Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
Cancel Confirm
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Confirm
Octa trading broker Sign up Log in
Octa trading broker
Open trading account
Test
Trading news
Back
5 Jun 2023

USD/MXN dips amidst US economy slowdown; MXN threatens new year-to-date lows

  • USD/MXN falls close to 0.50% amid declining US bond yields, on US recession fears.
  • Despite an unchanged interest rate from the Mexican central bank, the Mexican Peso teeters towards year-to-date lows.
  • USD/MXN is downward biased, potentially testing the current YTD low and the 2016 yearly low, suggesting bearish market sentiment.

USD/MXN drops close to 0.50% as the week begins, undermined by falling US bond yields, courtesy of mixed data, even though last week’s job report in the United States (US) cemented the case for one more rate hike by the US Federal Reserve (Fed). The Mexican Peso (MXN) threatens to fall toward new year-to-date (YTD) lows, albeit the central bank of Mexico held rates unchanged at its last meeting. The USD/MXN is trading at 17.4629 after hitting a high of 17.5971.

USD/MX pair weakens as US bond yields fall, concerns over potential US recession mount as further rate hikes by the Fed hinted

Wall Street is trading with losses as market sentiment deteriorated, as data from the Institute for Supply Management (ISM) revealed that service business activity remains in expansionary territory but slowing down. That, alongside a contractionary figure in manufacturing, sparked fears of an upcoming recession in the United States. Another piece of the puzzle added to recessionary anxiety is that Factory Orders released by the US Census Bureau weakened from 0.6% in April to 0.4% in the last month, excluding transportation, improved from a -0.7% drop to -0.2% in March.

Consequently, the greenback remains under pressure, as shown by the US Dollar Index (DXY). The DXY, a basket of six currencies that measures the performance of the USD, drops 0.04%, down at 103.995, weighed by falling US bond yields.

Hence, the USD/MXN has fallen from around the 17.59s area, even though that consumer confidence in Mexico was 44.4 in May. Contrarily, gross fixed income climbed 0.5% in March from February, as revealed by the Instituto National de Estadistica, Geografia e Informatica (INEGI) on Monday.

USD/MXN Price Analysis: Technical outlook

USD/MXN remains downward biased, though consolidated at around the 17.60/17.40 figure, during the last six trading days, unable to reclaim the 20-day Exponential Moving Average (EMA) at 17.6896, which could exacerbate a rally toward the 50-day EMA at 17.8995, ahead of re-testing the 18.00 handle. USD/MXN path of least resistance is downward and might test the current YTD low of 17.4238. A breach of the latter will expose the 2016 yearly low of 17.0509 before diving to 17.0000.

 

Jun 5, 2023

USD/CAD Price Analysis: Bulls taking control and eye significant correction

USD/CAD is been in the hands of the bulls at the start of the week while the yield on benchmark government debt climbed and despite a surprise in the
Read more Previous
Jun 5, 2023

EUR/JPY trades with losses after mixed European economic data

The EUR/JPY retreated to the 149.70 regions at the start of the week while the Euro traded mixed against its major rivals following disappointing PMIs
Read more Next