Mexican Peso Rises Against U.S. Dollar: Current Trends And Future Outlook

Also recently the foreign exchange value of the Mexican Peso has been rising against the US Dollar while withstanding global headwinds. In this article we will look at what is behind this development, the important price levels and what might happen in the next couple of weeks.

Current Trends of Mexican Peso Against U.S. Dollar

Strengthening of the Mexican Peso: In the present analysis, it has been observed that Peso has been appreciated against the Dollar and it is exhibited in daily price movements that depicting strong buying signal have been projected in near past.
Market Confidence in Mexican Economy: In addition to Peso demand, global investors are getting more confident in Mexico’s economic fundamentals and growth prospects.
U.S. Dollar Weakness: The Dollar has come under some pressure due to fear relating to interest rate policies and slowing economic growth in the Euro zone, which has given a further boost to the Peso’s appreciation.

What to Expect for USD/MXN in the Near Future

Potential for Continued Peso Gains

Several factors suggest the Peso may continue to rise in the short term:

Support from Economic Data: The following economic forecasts are expected to maintain the investors’ interest on the Peso; Mexico has one of the most promising manufacturing exports potential.
Strong Demand: Trade and investments work to the Peso’s advantage as advances in trading enhances near-shoring and the trading relations between the two nations.
Resistance Levels to Watch: Trading of USD/MXN is very close to the key resistance level of 20.76 and 20.63. Such a break through these levels may indicate more upside for the Peso.