The US Dollar’s performance against the Mexican Peso has successfully continued its trades above the 19.00’s region which can be considered as a 7-month high as a similar performance was seen back in March. Aside from the strong US Dollar value, Investors at the time being dread the potential end of the NAFTA discussions which in result has encouraged a boost in the pair.
The Mexican Peso is inclined to have an optimistic correspondence with crude oil. As for its figures, the West Texas Intermediate experienced a sharp increase in the recent periods which is believed to have had a restricted the positive aspect in the trades of USD/MXN pairup.
As mentioned above, the US Dollar’s trades against the Mexican Peso have indeed performed above the 19’s region. At the time of writing, it can potentially close at 19.175 as no bears have interrupted the apparent uptrend.
As for its Relative Strength Index, the pair has been trading within the 60’s and 70’s region for the whole month of October. It currently is at 64.50 in an uptrend position.
However, its Coppock curve seemed to have declined in its recent trades. At 4.59, a buy would be advised since it is still on a positive region for the said period.
The figures released today in Mexico revealed that the economy declined by 0.2% during the recent third quarter. This is believed to be a first time since 2013.
Possibilities of risk to the positive outlook comprise of NAFTA negotiations, Mexican presidential elections which is expected to commence by next year’s June and of course the exchange frequency.
As for the annual growth rate, the data plunged to 1.6% from the previous data of 1.8%. Regardless of such declines, the Mexican government forecasts a recovery and acceleration in movement for the coming periods. Possibilities of risk to the positive outlook comprise of NAFTA negotiations, Mexican presidential elections which is expected to commence by next year’s June and of course the exchange frequency.
“After the election results in the United States we thought the Mexican economy would suffer a negative shock. We were wrong. However, it is clear that while there was no shock to economic activity, the economy started a slowdown process that has finally triggered the first decline in GDP in four years. We expect this process to continue as news from the NAFTA negotiations continue, and the country prepares for the presidential elections next year.” An Analyst told reports.
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