• Entertainment
  • Finance
  • Marketing
  • Real Estate
  • Technology
  • Social
National Journal Community Of e-Experts
Finance 0

Forex Critical: The Mexican Peso Slams Into A Presidential Debate

By Kurt Osterberg · On April 21, 2018

It seems the U.S. dollar index (USD) has stopped going down. Since careening to its lows in January, the U.S. dollar has bounced up and down through a well-defined range.

It is starting to look like the U.S. dollar index (USD) has stopped going down.

Source: Stockcharts.com

The U.S. dollar gained each of the last 4 trading days as part of its latest run-up toward the top its trading range. This renewed strength enhanced a surge of weakness in the Mexican peso ahead of a Presidential debate this weekend.

Source: TradingView.com

The Mexican peso weakened significantly going into the end of the week. USD/MXN was at one point up a whopping 3.6% for the week before falling back to its converged 50 and 200DMAs

Based on this surge, my exit from my short USD/MXN position came just in time. At the time, I pointed out that the risk/reward favored a relief rally for USD/MXN. Now that this rally has happened, I am eager to get in short again. I assume the passing of the debate without “incident” will help assuage whatever fears went into the debate to drive rush to the peso’s exits.

However, I will be patient: the U.S. dollar may break out above its trading range sometime soon based on increasing bond yields in the U.S. Moreover, NAFTA-related headlines could also cause dramatic swings in USD/MXN. So I will likely wait until the 18.8 to 19 range before considering a fresh short. A USD breakout will make me less inclined to short USD/MXN. I do not want to sustain a long in the pair because of its high carry (interest rate).

 

Print Friendly, PDF & Email

Share Tweet

Kurt Osterberg

You Might Also Like

  • Finance

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

  • Finance

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

  • Finance

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

No Comments

Leave a reply Cancel reply

Top Finance

  • 3 Best Large-Cap Blend Mutual Funds For Enticing Returns 3 Best Large-Cap Blend Mutual Funds For Enticing Returns
  • What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage What is Value Chain Analysis? How to Deliver Value & Gain a Competitive Advantage
  • Hedge Funds In The US Hedge Funds In The US
  • 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement 5 Ridiculously Useful Non-Monetary Reward Examples that Improve Employee Engagement
  • Chart: Amazon’s Dominance In Ecommerce Chart: Amazon’s Dominance In Ecommerce

New Posts

  • STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    STEPN Sneaker NFTs Sell For $100, Previously Worth $1200

    June 20, 2022
  • NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    NFT Prices in Free Fall – 5 NFT Collections to Start Buying Today

    June 20, 2022
  • 5 NFTs Trending on Twitter Going Cheap to Invest in Now

    5 NFTs Trending on Twitter Going Cheap to Invest in Now

    June 20, 2022
  • Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    Bill Gates – ‘NFTs & Crypto Based on Greater Fool Theory’

    June 20, 2022
  • Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    Actor Seth Green Pays $300,000 to Recover his Stolen BAYC NFT

    June 20, 2022
  • About
  • Contact Us
  • Privacy & Policy
  • Sitemap
  • Terms of use

Copyright © 2018-2021 NJCEE. All Rights Reserved.