MXN (Peso) Weekly review 07/11/2016 to 11/11/2016

Fundamental summary
The past week was highly driven by the US elections. The Peso experienced a shock as Trump was dominating in the presidential run. USDMXN was observed to be hitting new high values in the vicinity of 21.39. The weakness in Peso was related to undesired news of Trump that he needs to build a wall between Mexico and USA to be able to manage undocumented immigrants on the soil of US. Despite the statements of Trump, the Mexico President is still optimistic about the relationship of Mexico and USA relating to NFTA.Full story

Industrial production

The September industrial production YoY fell to -1.3%, from August industrial production of 0.3%
The September industrial production MoM came out at 0.1%, from -0.4 of August.Full story

Consumer price index

The CPI for October 2016 went up by 3.06% vs. 3.1% forecast. This was an improvement from the previous month’s 2.97%. October 2016 marked the highest inflation rate since April 2015. This was driven by increased cost of food, transport and housing.
The core CPI went up 3.1% from last year and 0.28% for the month.Full story

Consumer confidence

The consumer confidence for October came out as 85, from 84.2 seen in September. This was higher than the forecast of 83.3, This was the first increase in consumer confidence since the past 3 months.Full story

Technical analysis

The pair has carried on to be bullish. This upward trend was catalyzed by the results of US elections that were won by Donald Trump. USDMXN pair made new highs.

USDMXN daily

The pair started a week with a gap and hit M1, at the time of election results, we saw USD over powering Peso, and the pair broke through all resistance to make new highs which were never reached in more than 6 years back.

USDMXN H4

On Friday, price was seen to be consolidating around 20.6790 which was marked as a previous resistance.

USDMXN H1

From lower time frame, price was consolidating above the trend line which acts a support.

USDMXN H1

From lower time frame, price was consolidating above the trend line which acts a support.

One thought on “MXN (Peso) Weekly review 07/11/2016 to 11/11/2016”

  1. Thanks bud – tell us more about the central bank policy and the path their monetary policy is currently on. Also how will Trump impact repatriation of funds for Mexico? Is there anything that could cause Mexican strength or should we continue buying dips on this pair?