INSUBCONTINENT EXCLUSIVE:
trading session opened at 20.87855, with the exchange rate fluctuating between a high of 20.88335 and a low of 20.81107 so far this morning
This represents relatively stable conditions in early trading, despite recent volatility in global markets.The Mexican peso extended its
losing streak for the third consecutive day against the dollar yesterday, with the USD/MXN pair trading at 20.72, up 0.25%
This followed a significant jump on Friday (April 4), when the pair surged 1.77% from 19.9432 to 20.2955.Market sentiment improved slightly
yesterday after United States Treasury Secretary Scott Bessent suggested potential trade deals with major partners, though this was
tempered when the White House confirmed that 104% tariffs on China had officially gone into effect.Tariff Concerns Driving Market
broad reciprocal tariffs announced by President Trump that affected over 180 nations.Mexican Peso Holds Steady at 20.87 After Week of
Volatility: April 9 Market Analysis
structure, concerns remain about potential tariffs on Mexican auto exports, with industry analysts watching closely for any policy shifts
economists project further easing by Banco de Mexico, with expectations of a 50 basis point rate cut in May
support the peso through carry trade appeal.Technical Analysis Suggests Further VolatilityThe technical outlook for USD/MXN remains bullish
The pair has successfully cleared the confluence of the 50-day and 100-day Simple Moving Averages (SMAs) near 20.34/36, maintaining upward
momentum.If strength continues, buyers could target the March 4 peak at 20.99, followed by the year-to-date high of 21.28
Conversely, if USD/MXN moves below 20.34, the first support would be the psychological 20.00 level, with a breach potentially exposing the
200-day SMA at 19.80.Fund Flows and Investment TrendsRecent investment flow data shows significant movement in global markets
For the week ended March 26, total estimated inflows to long-term mutual funds and ETFs reached $13.18 billion.Equity funds saw substantial
inflows of $13.51 billion, contrasting with bond funds which experienced outflows of $1.02 billion
Commodity funds attracted inflows of $2.81 billion, indicating investor interest in alternative assets amid market uncertainty.Expert
potential challenges for United States monetary policy amid changing trade dynamics.Forward ProjectionsDespite recent volatility, analysts
expect the Mexican peso to remain relatively stable in coming months
Based on median predictions from foreign exchange experts, the currency is projected to experience only a slight decrease of 0.4% over the
next six months.According to Trading Economics models and analyst expectations, the USD/MXN is expected to trade at 20.38 by the end of this
quarter.Historical ContextThe peso has had a volatile start to April, moving from 20.330 on April 1 to 19.949 on April 3, before jumping to
This follows a March that saw steady appreciation from mid-month lows, with the average exchange rate for March 2025 at approximately 20.227
pesos per dollar.Looking at the broader picture for 2025, the peso has shown relative strength compared to its 2024 levels, with market
outlook in the coming quarters.
