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
Trading news
Back
7 Jan 2020

USD/MXN rises on Tuesday, remains under 19.00 near critical support

  • Mexican peso modestly lower versus US dollar on Tuesday. 
  • Greenback gains across the board, but remains under 19.00 versus MXN. 

The USD/MXN rose during the American session to 18.92 and then pulled back. As of writing it trades at 18.87, marginally higher for the day as it continues to move in a consolidation range. 

The greenback rose across the board amid a correction and also boosted by US economic data. Commodity and emerging market currencies were affected on Tuesday by risk aversion. Wall Street heads for a negative close, trimming some of yesterday’s gains. 

From a technical perspective, USD/MXN continues to move in a range, with the lower bound at 18.80 working as critical support that if broken should lead to more losses. On the upside, the greenback needs to rise and hold above 19.00 to remove the bearish pressure. 

MXN outlook 

The outlook for the Mexican peso over the next quarter depends on many factors, particularly Banxico’s policy, government fiscal actions, and economic performance. 

“Even though Banxico cut its policy rate during the year, the current 7.25% level is still quite attractive for foreign investors to buy Mexican bonds. The market expects further policy rate cuts during 2020, but the magnitude of those cuts depends on the balance between still weak economic activity and the resilient and uncertain inflation outlook, being influenced by the recent rise in the minimum wage. On the fiscal side, the government provided good signs of discipline and the popularity of AMLO reduces the risk of populist measures that could threaten fiscal stability, although there are risks of lower-than-expected GDP growth in 2020 (market expectation is slightly above 1%), lower revenues with oil production and growing spending demands”, explained analysts at MUFG. 

The balance of risks is in favour of stronger Mexican peso but considering it appreciated excessively during December, there is scope for some depreciation during the first quarter according to MUFG analyst. 

 

Jan 7, 2020

US President Trump: Prepared for any potential Iran retaleration

US President Donald Trump is crossing the wires and has said that the US is totally prepared for Iranian retaliation, would retaliate in turn. More to
Read more Previous
Jan 7, 2020

USD/INR: Rupee stuck on a bearish trend – MUFG

Analysts at MUFG Bank, forecast the USD/INR pair will trade at 72.50 in the first quarter and at 72.75 during the second quarter. They see India’s gro
Read more Next