The Canadian Dollar is trading at 15.59 against the Mexican Peso this morning, down 0.19% with a YTD return of -0.22%. The pair’s open rate was 15.65, similar to the previous close of 15.62. CAD/MXN daily range should stay between 15.57 and 15.66, the 52-week range is anticipated to move between 13.97 and 18.17.
After dropping below the 14.00 support level in February 2020 when the pandemic hit, CAD has been able to gain traction staying above the 15.00 level. CAD/MXN managed to reach the highest exchange rate seen since 2017 in March of last year, passing the 17.00 level which was ideal for bulls, but the pair’s rapid growth has yet to carry over into the new year.
The US Dollar is trading at 19.76 against MXN, down -0.68%. The open rate was 19.92 today, slightly higher than the previous close of 19.90 with a YTD return of -0.47%. The pair’s daily range should sit between 19.75 and 19.34, the 52-week range is forecasted to move between 18.52 and 25.78.
USD performed well in Q1 last year, surging above the 24.00 level but since has lost strength against MXN dipping below 20.00. Whether the USD/MXN exchange rate will pass the 21.00 support level this month is up in the air right now, causing traders to follow bearish tendencies until they understand how the market will be impacted by crude oil, the Biden presidency, and COVID-19 vaccine developments.
DailyFX reported that “The Mexican Peso looks positioned for a prolonged advance against the US Dollar in 2021” which “could present bearish USD/MXN trading opportunities” with MXN having the potential to continue its recent success.
By Surina Nath