The Canadian Dollar is trading at 16.35 against the Mexican Peso this morning, up 0.13% with a YTD return of 4.62%. The pair’s open rate was similar to their previous close at the 16.33 range. CAD/MXN is expected to move between 16.29 and 16.38 throughout the day, the currency pair’s 52-week range is forecasted to fluctuate between 14.36 and 18.17.
This time last year, the CAD/MXN exchange rate dramatically increased from 13.98 to the 17.00 level which took bulls for a spin as the pair continued to fluctuate within the 16.00 and 17.00 range in 2020. In November 2020 CAD/MXN fell to the 15.00 support level but since has made its way back to the 16.00 mark.
Over the last month, CAD/MXN has continued bullish trading patterns surging from the 15.80 level to 16.40. The currency pair has been experiencing the highest exchange rates seen in half a decade and traders are hoping that this growth will be bolstered with the spread of COVID-19 vaccinations and crude oil prices.
It looks like CAD/MXN will remain a sustainable investment as high rates are putting the bond-sensitive Peso at risk. Daily FX reported that “high domestic interest rates have made the Peso more vulnerable to global borrowing costs.”
MXN was in a weak position in the market at the start of the year and now the Peso is facing more turbulence as local factories and households continue to be affected by power disruptions from Texas. This is causing commodity currencies tied to energy resources such as CAD to have a stronger hold on not only oil but the electricity market as well.
By Surina Nath