- The USD/MXN minimums of three days in 20.31, although subsequently wins traction.
- The US dollar weakens on the day of liberation, but maintains profits against Mexican peso.
- The US ADP report generates more expected use.
- The focus is in the tariffs Donald Trump will announce at 20.00 GMT.
The USD/MXN ranges this Wednesday in a narrow range between a daily maximum of 20.39 and a minimum of three days in 20.31. At the time of writing, the par is quoted by 20.37, winning 0.07% in what we have been working on.
The dollar goes back before the reciprocal tariff ads of the day of liberation
The American dollar index (DXY) loses 0.19% in 104.02 during Wednesday’s American session, after having fallen at least two days in 103.93 in the last hour.
The ‘Liberation Day’ announced by Donald Trump has arrived. The US president put under the focus on the date of April 2 several weeks ago, announcing that today the reciprocal tariffs would be known with which the US wants to punish imports that enter the country. Without knowing the percentage of rates or affected countries, it begins to rumore that the White House intends to launch an order and then be able to negotiate reductions or exemptions country to country.
Before the key announcement of the day, the United States has published its Private Employment Report ADP, which has shown that 155,000 jobs were generated in Marchabove the expected 105,000 and February 84,000 (upward from 77,000). He has also published his orders to the February factory, which increased 0.6%, above 0.5% expected.
Mexico reduced its growth forecast in 2025
The gMexican Obierno updated Tuesday his 2025 economic growth forecastplacing it in a range of 1.5%-2.3% after in October it project 2%-3%. The reduction is due to uncertainty about US commercial policy, according to the Ministry of Finance and Public Credit.
The Mexican government has intensified its meetings with members of the US Executive with the objective of being able to dodge tariffs, as confirmed by the country’s president, Claudia Sheimbaun.
USD/MXN Price levels
The relative force index (RSI) of 14 suggests a rebound in the short -term price. The USD/MXN will find resistance in the area of 20.99/21.00, Maximum of March and psychological zone, respectively. Above, the focus is at 21.29, 2025 roof recorded on February 3.
Down, the first support is found in 20.31, minimum of the week. Below, the goal is in 19.95, soil of last week, and in 19.84, the lowest level of this year reached on March 14.
Mexican weight FAQS
The Mexican weight (MXN) is the most commercialized currency among its Latin American peers. 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 remittance levels sent by Mexicans living abroad, particularly in the United States. Geopolitical trends can also affect MXN: for example, the Nearshoring process (or the decision of some companies to relocate the manufacturing capacity and supply chains closer to their countries of origin) is also considered a catalyst for the Mexican currency, since the country is considered a key manufacturing center in the American continent. Another catalyst for MXN is oil prices, since Mexico is a key exporter of the raw material.
The main objective of the Central Bank of Mexico, also known as Banxico, is to maintain inflation at low and stable levels (in or close to its 3%target, the midpoint of a tolerance band between 2%and 4%). To do this, the bank establishes an adequate level of interest rates. When inflation is too high, Banxico will try to control it by raising interest rates, which makes the indebtedness of homes and companies more cooling, thus cooling the demand and the economy in general. The highest interest rates are generally positive for Mexican weight (MXN), since they lead to higher yields, which makes the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken the MXN.
The publication of macroeconomic data is key to evaluating the state of the economy and can have an impact on the valuation of the Mexican weight (MXN). A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only attracts more foreign investment, but it can encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this fortress is accompanied by high inflation. However, if the economic data is weak, the MXN is likely to depreciate.
As an emerging market currency, the Mexican weight (MXN) tends to rise for periods of risk, or when investors perceive that the general market risks are low and, therefore, are eager to participate in investments that carry a higher risk. On the contrary, the MXN tends to weaken at times of market turbulence or economic uncertainty, since investors tend to sell higher risk assets and flee to the most stable safe shelters.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
