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

Bằng cách đưa ra quyết định này, tôi tuyên bố rõ ràng và xác nhận rằng:
  • Tôi không phải là công dân hoặc cư dân Hoa Kỳ
  • Tôi không phải là cư dân của Philippines
  • Tôi không trực tiếp hoặc gián tiếp sở hữu hơn 10% cổ phần/quyền biểu quyết/lợi ích của cư dân Hoa Kỳ và/hoặc không kiểm soát công dân hoặc cư dân Hoa Kỳ bằng các phương thức khác
  • Tôi không thuộc quyền sở hữu trực tiếp hoặc gián tiếp hơn 10% cổ phần/quyền biểu quyết/lợi ích và/hoặc dưới sự kiểm soát của công dân hoặc cư dân Hoa Kỳ được thực hiện bằng các phương thức khác
  • Tôi không liên kết với công dân hoặc cư dân Hoa Kỳ theo Mục 1504(a) của FATCA
  • Tôi nhận thức được trách nhiệm của mình khi khai báo gian dối.
Theo mục đích của tuyên bố này, tất cả các quốc gia và vùng lãnh thổ phụ thuộc của Hoa Kỳ đều ngang bằng với lãnh thổ chính của Hoa Kỳ. Tôi cam kết bảo vệ và giữ cho Octa Markets Incorporated, giám đốc và cán bộ của công ty vô hại chống lại bất kỳ khiếu nại nào phát sinh từ hoặc liên quan đến bất kỳ hành vi vi phạm tuyên bố nào của tôi bằng văn bản này.
Chúng tôi trú trọng quyền riêng tư và bảo mật thông tin cá nhân của bạn. Chúng tôi chỉ thu thập email để cung cấp các ưu đãi đặc biệt và thông tin quan trọng về sản phẩm và dịch vụ của chúng tôi. Bằng cách gửi địa chỉ email của bạn, bạn đồng ý nhận những bức thư như vậy từ chúng tôi. Nếu bạn muốn hủy đăng ký hoặc có bất kỳ câu hỏi hoặc thắc mắc nào, hãy viết thư cho Hỗ trợ Khách hàng của chúng tôi.
Octa trading broker
Mở tài khoản giao dịch
Back

Mexican Peso recovers ahead of FOMC meeting minutes

  • Mexican Peso registers gains with USD/MXN trading at 16.62, down 0.08%.
  • Fed officials are cautious about rate cuts, echoing Chair Powell's ‘higher for longer’ policy.
  • The Citibanamex survey shows most analysts expect a Banxico rate cut on June 27.

Mexican Peso registers gains against the US Dollar on Wednesday during the North American session ahead of the release of the minutes of the last Federal Reserve (Fed) monetary policy meeting. That and the recent Fed officials' hawkish commentary keep the Peso down on the week. The USD/MXN trades at 16.62, down a minimal 0.08%.

Following the April 30-May 1 Fed meeting, Fed Chair Jerome Powell opened the door to keeping interest rates higher for longer. Most Fed officials echoed his words, adopting a cautious stance regarding cutting borrowing costs.

TD analysts wrote, “The minutes from the most recent FOMC meeting are likely to grab attention next week following the Committee’s decision to communicate that ‘higher for longer’ remains the policy of choice in the near horizon.”

Across the border, the May Citibanamex survey showed that 26 analysts estimate the Bank of Mexico (Banxico) will lower rates at the upcoming meeting on June 27. Eight estimate the Mexican central bank will lower rates until the second half of 2024.

Inflation expectations for 2024 were revised upward from 4.17% to 4.21%, while underlying prices are expected to fall from 4.10% to 4.07%.

Daily digest market movers: Mexican Peso stabilizes amid diverging views on Banxico’s Governing Council

  • On Tuesday, Mexico’s docket featured the Economic Activity Indicator for April, which revealed that the economy slowed, according to non-seasonally adjusted figures on a yearly basis.
  • On Thursday, Mexico’s economic docket will feature the announcement of the Gross Domestic Product for Q1 2024 and mid-month inflation data for May. Banxico will also reveal monetary policy minutes from its latest meeting.
  • Mexico’s Gross Domestic Product for Q1 2024 is expected to show the Mexican economy is slowing amid higher borrowing costs of 11.00% set by Banxico due to fears of higher inflation and the risks of Peso depreciation.
  • Diverging views surfaced in Banxico. Governor Victoria Rodriguez Ceja said last Monday that the bank would discuss lowering rates in the upcoming meeting on June 29. Conversely, Deputy Governor Espinosa commented that lowering rates in March might have delayed inflation convergence toward the central bank’s target by two quarters.
  • On Tuesday, Fed officials made some comments. Atlanta Fed President Raphael Bostic said he isn’t in a hurry to reduce rates and prefers to keep them steady. Later, Fed Governor Christopher Waller said that April’s CPI showed progress but that he needs to see several months of good inflation data before supporting a rate cut. His colleague, Vice-Chair of Supervision Michael Barr, commented, “We still need to finish the job on inflation.”
  • Data from the Chicago Board of Trade shows investors are expecting 31 basis points (bps) of Fed easing toward the end of the year.

Technical analysis: Mexican Peso counter attacks as USD/MXN hovers near 16.63

The USD/MXN remains in a downtrend, though it seems to have bottomed out at around the 16.52/54 area during the week. The exotic pair has broken the 16.60 resistance level. Sellers’ momentum stalled as depicted by the Relative Strength Index (RSI), which stands in bullish territory but flat.

If buyers lift the USD/MXN toward the 50-day Simple Moving Average (SMA) at 16.76, it could exacerbate a rally toward the 100-day SMA at 16.91. Once cleared, the next supply zone would be the 17.00 psychological level. In that event, the next stop would be the 200-day SMA at 17.17.

Conversely, a drop below 16.52 could exacerbate a challenge of the 16.50 psychological level, ahead of the year-to-date low of 16.25.

Mexican Peso FAQs

The Mexican Peso (MXN) is the most traded currency among its Latin American peers. Its value is broadly determined by the performance of the Mexican economy, the country’s central bank’s policy, the amount of foreign investment in the country and even the levels of remittances sent by Mexicans who live abroad, particularly in the United States. Geopolitical trends can also move MXN: for example, the process of nearshoring – or the decision by some firms to relocate manufacturing capacity and supply chains closer to their home countries – is also seen as a catalyst for the Mexican currency as the country is considered a key manufacturing hub in the American continent. Another catalyst for MXN is Oil prices as Mexico is a key exporter of the commodity.

The main objective of Mexico’s central bank, also known as Banxico, is to maintain inflation at low and stable levels (at or close to its target of 3%, the midpoint in a tolerance band of between 2% and 4%). To this end, the bank sets an appropriate level of interest rates. When inflation is too high, Banxico will attempt to tame it by raising interest rates, making it more expensive for households and businesses to borrow money, thus cooling demand and the overall economy. Higher interest rates are generally positive for the Mexican Peso (MXN) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken MXN.

Macroeconomic data releases are key to assess the state of the economy and can have an impact on the Mexican Peso (MXN) valuation. A strong Mexican economy, based on high economic growth, low unemployment and high confidence is good for MXN. Not only does it attract more foreign investment but it may encourage the Bank of Mexico (Banxico) to increase interest rates, particularly if this strength comes together with elevated inflation. However, if economic data is weak, MXN is likely to depreciate.

As an emerging-market currency, the Mexican Peso (MXN) tends to strive during risk-on periods, or when investors perceive that broader market risks are low and thus are eager to engage with investments that carry a higher risk. Conversely, MXN tends to weaken at times of market turbulence or economic uncertainty as investors tend to sell higher-risk assets and flee to the more-stable safe havens.

 

US Dollar sees slight uptick ahead of May’s FOMC Minutes

The US Dollar Index (DXY) is trading at 104.80, showing mild gains in Wednesday’s American session.
Đọc thêm Previous

United States 20-Year Bond Auction fell from previous 4.818% to 4.635%

United States 20-Year Bond Auction fell from previous 4.818% to 4.635%
Đọc thêm Next