13 Jan 2015
USD/MXN drops to 3-week low
FXStreet (Córdoba) - USD/MXN moved sideways around 14.65 during the first half to the day but then broke decisively to the downside and dropped to 14.53, reaching the lowest price since December 19. The mexican peso is among the best performers among Latin American currencies, with the brazilian real.
During the American session USD/MXN trimmed losses and it was trading at 14.57. The decline of the pair was boosted by a recovery of crude oil prices from 5-year lows.
Stocks in Mexico also trimmed gains and the main index was up 0.58% while in Wall Street, the Dow Jones was moving off session highs, gaining 0.79%.
A good 1Q for MXN?
“Our view that some of Mexico’s strengths have been overlooked (the ability to capitalize on stronger US growth), and that some of the weaknesses have been overblown (the impact of lower oil in 2015) make us more constructive on MXN than we have been in the past—particularly at current levels”, commented Blue Macellari, Senior LatAm Strategist at TD Securities.
According to Macellari the strong seasonality and supportive positioning in the market means that they like being long in the mexican peso through the first quarter of this year but warned that with the Fed likely to be raising rates later this year, there are many reasons to be cautious in the second half of 2015.
During the American session USD/MXN trimmed losses and it was trading at 14.57. The decline of the pair was boosted by a recovery of crude oil prices from 5-year lows.
Stocks in Mexico also trimmed gains and the main index was up 0.58% while in Wall Street, the Dow Jones was moving off session highs, gaining 0.79%.
A good 1Q for MXN?
“Our view that some of Mexico’s strengths have been overlooked (the ability to capitalize on stronger US growth), and that some of the weaknesses have been overblown (the impact of lower oil in 2015) make us more constructive on MXN than we have been in the past—particularly at current levels”, commented Blue Macellari, Senior LatAm Strategist at TD Securities.
According to Macellari the strong seasonality and supportive positioning in the market means that they like being long in the mexican peso through the first quarter of this year but warned that with the Fed likely to be raising rates later this year, there are many reasons to be cautious in the second half of 2015.