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- Mexican Bizo tanks, where USD/MXN is raised to 20.45 after China is running out of 34 % of customs tariffs
- China returns with 34 % duties on American goods; Trump’s fiery response increases tensions in the market.
- Jpmorgan raises the possibilities of American recession to 60 %; Strong jobs report and Powell Charity Fuel Fuel Power Power.
The Mexican Bizo (MXN) is decreased sharply against the US dollar (USD) on Friday, as it achieved gains on Thursday, prompting the exchange rate to be less than the decisive number 20.00 in the simple moving medium test for 200 days (SMA) in 19.78. Trade war escalation between US (The United States) China and Goodish data from the United States lead the gathering in the US dollar/MXN, which trades at 20.45, an increase of more than 2.60 %.
Risk hate is the name of the game in the financial markets. Earlier, China announced that it would impose 34 % definitions on all American goods as Ankara of Trump’s decision. This was followed by Trump’s reaction, in which he published, “China has played wrongly; I felt panic – the thing they could not do!” On his social network of truth.
Meanwhile, the powerful job report in the United States did nothing to fade the global recession fears, although the unemployment rate was released. Friday data, along with Federal Reserve (FED), President Jerome Powell, Greenback, has strengthened despite the fall of US Treasury revenues.
JPMorgan Chase has increased the possibility of recession in the United States to 60 %, and blamed a tariff by Trump, an increase of 20 percentage points since March.
American stocks feel the pain, as they spread great losses, as the VIX index reached eight months at 45.56, another level seen in August 2024.
GEOGRAFíS (IGI), Mexico
Next week, the economic list in Mexico will include the last meeting minutes in Panco de Mexico (Pancico) and inflation data. Through the northern border, the American table will include speakers of the Federal Reserve, the latest minutes of the Federal Open Market Committee (FOMC), and the issuance of inflation numbers on the consumer and the producer.
Daily Digest Market Movers: Mexican Peso
- Consumer confidence in Mexico deteriorated in March. Inegi revealed that the index decreased from 46.3 to 46.
- The Governor of Pancico, Victoria Rodriguez Sega, stated that the central bank will remain a pace of American commercial policies and its impact on the country, with the primary focus on inflation, as I noticed in an interview with EL Fanciero.
- The salary data that is not planted from data in March in the United States exceeded the estimates of 135,000, with numbers to 228,000, largely exceeding 151 km February.
- The unemployment rate in the United States increased from 4.1 % to 4.2 %, according to Bloomberg, which indicated that it was “often a mistake.”
- Jerome Powell, head of the Federal Reserve, stated that the current monetary policy is in a good position to allow the Federal Reserve to pending more clarity before making any amendments. He warned that the customs tariff is likely to push inflation up in the coming quarters, with the possibility of more stable effects over time.
- Regarding economic expectations, Powell acknowledged that although the economy remains in a strong situation, uncertainty has increased and negative risks are escalating, confirming a more cautious tone than the central bank.
Technical expectations USD/MXN: Mexican Peso puts water where USD/MXN climbs above 20.40
The USD/MXN oud direction remains intact after testing it shortly on a 200 -day moving average (SMA) on Thursday, before buyers recovered 20.00 marks. Since the strange husband has reached a new weekly height, the bulls “” Expectations It seems constructive.
It is worth noting that the RSI Index has turned into a rise, indicating that buyers gain momentum.
Therefore, the first resistance of the US dollar/MXN will be the peak of March 4 at 20.99. The latter breach will be exposed 21.00, followed by the highest level on February 3, 21.28. On the contrary, the first support is the meeting of simple moving averages 50 and 100 days (SMAS) around 20.35/36, followed by a 20.00 mark. The latter will penetrate SMA for 200 days in 19.76.
Common questions between Mexican Peso
The Mexican Bezo (MXN) is the most circulating currency among its peers in Latin America. Its value is widely determined by the performance of the Mexican economy, the country’s central bank policy, the amount of foreign investment in the country and even the levels of transfers sent by Mexicans who live abroad, especially in the United States. Geopolitical trends can also move MXN: for example, the proximity process – or the decision of some companies to transfer manufacturing capabilities and supply supply chains near their countries of origin – is a motivation for the Mexican currency as the country is a main manufacturing center in the American continent. Another MXN catalyst is oil prices because Mexico is a major source of commodity.
The main goal of the central bank in Mexico, also known as Pancico, is to maintain inflation at low and stable levels (in or near its 3 % target, the center point in the range of tolerance between 2 % and 4 %). To this end, the bank determines an appropriate level of interest rates. When inflation is very high, BancicPico will try to tame it by raising interest rates, making it more expensive for families and companies to borrow money, thus cooling demand and macroeconomic economy. The highest interest rates are generally positive for Mexican Peso (MXN) because it leads to higher returns, making the country a more attractive place for investors. On the contrary, low interest rates tend to weaken MXN.
The total economy data is a key to assessing the state of the economy and can have an impact on the Mexican PESO (MXN) evaluation. The strong Mexican economy, based on high economic growth, is a decrease in unemployment and high confidence, useful for MXN. It not only attracts more foreign investments, but may also encourage the Bank of Mexico to increase interest rates, especially if this force corresponds to high inflation. However, if economic data is weak, MXN is likely to decrease.
As a currency of the emerging market, the Mexican Biso (MXN) tends to strive during risk periods, or when investors see the wider market risk low and thus yearn to communicate with investments that bear greater risks. On the contrary, MXN tends to be weak in times of turmoil in the market or economic uncertainty where investors tend to sell high -risk assets and flee to the most resigned safe havens.
