Mxn Trades At Multi Year High

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Mxn Trades At Multi Year High

Mexican Peso (Mxn) Trades At Multi-Year High

The Mexican Peso (MXN) staged an impressive rally against the greenback on Friday. In doing so, the Mexican Peso (MXN) has now reached a 9-year high against the USD.

It appears that the stronger-than-expected NFP report has pushed the MXN higher against its peers. At the time of the NFP release, some upside was seen in the USD/MXN but it seems that the resilience of Peso prevailed over the long run.

Mxn Looks Towards 16.20 And 16.10

The exotic pair USD/MXN is now trading near the 16.44 handle, with eyes set on the 16.20 and 16.10 levels. According to some experts, the key catalyst for the upside in the USD/MXN is an improved risk appetite after the release of the NFP.

The release of NFP led to a pleasant surprise as it has sent everything higher: US bond yields, US dollars, and even US stocks!

The only thing that was not good in the report was the average hourly earnings. This particular data showed a decline during a 12-month period.

Against this fundamental backdrop, some experts believe that the rate cut has now shifted from June to July 2024. Still, these are just rumors, as the month with the most chances of a rate hike is still September 2024.

Meanwhile, Fed officials are advising the market players that patience is still needed and it will be too soon to rush into the decision of policy easing.

According to Fed Lorie Logan, the Federal Reserve has no urgency when it comes to cutting the interest rates in the country. After all, the risks associated with cutting rates are still too high!

For now, it appears that the USD/MXN is heading lower, near the 16.40 level, while the RSI is showing a reading of 35. This is a sign that more downside is ahead for the USD/MXN, which is a sign of Peso appreciation.

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