Mxn Starts Recovery From Lows

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Mxn Starts Recovery From Lows

Mexican Peso (Mxn) Starts Recovery From 2-Year Low

The Mexican Peso (MXN) has made a sharp U-Turn after the conclusion of the US elections. The Mexican Peso (MXN) appears to be recovering from its multi-year lows now.

But if we look back, the Mexican Peso (MXN) initially came under pressure after it became clear that Trump was winning. This was based on Trump's statement that he would put steep traffic on imports coming from Mexico.

Mxn Gains Against Usd, Gbp, &Amp;Amp; Eur

But once Trump won the elections, the MXN actually recovered and has managed to reclaim some of its losses. Today, the MXN is performing really well against its peers and appears to be gaining ground.

The pairs, such as USD/MXN, GBP/MXN, and EUR/MXN, show that the MXN has the upper hand. This is a sign that the Mexican Peso (MXN) strength is universal and not just limited to the US Dollar.

One reason why the Mexican Peso (MXN) is gaining ground has to do with the upcoming November meeting with the US Fed. The US central bank is likely to deliver a rate cut of 0.25% on Thursday.

If that happens, it would be a 180-degree turn from the Trump economic policies, which could fuel up the inflation levels. Generally, lower rates are detrimental to the US dollar, and that's what we see in the USD/MXN pair.

But despite the recent recovery in MXN, the overall trend of USD/MXN is still tilted towards the downside. Also, the USD/MXN is trading in a bullish channel which means it is wise to wait for a break out of it.

The MACD indicator on the USD/MXN chart shows that it has already dipped below the signal line. This means the USD/MXN might change directions if this continues.

If the USD/MXN can manage to break the 2.080 resistance, it will confirm a direction change. In that case, the next target for the MXN will be 21.00 followed by next one at 21.50.

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