CAD to MXN to USD Daily Overview: October 30th

CAD to MXN to USD Daily Overview: October 30th

Canadian Dollar (CAD) to Mexican Peso (MXN)

The Mexican Peso is positioned to steadily increase as the end of the quarter approaches. Though there is looming pressure surrounding rick aversion, MXN is still performing well compared to a broad basket of currencies.

The Canadian Dollar is trading against the Mexican Peso at 16.03 by the end of October, with a YTD return of 10.48%. Analysts at Standard Chartered and Rabobank say “the currency is poised to extend its rally through the end of the year.”

Bloomberg Bloomberg tracked that since the end of June, MXN has appreciated almost 10% against the dollar and expected to gain around 5% as 2021 approaches.

US Dollar (USD) to Mexican Peso (MXN)

MXN has been “getting an extra lift from bets on manufacturing revival and Mexico’s relatively high-interest rates”, which will lead the currency towards further gains.

1 USD is trading at 21.37 against MXN with a YTD return of 12.84%; sell-offs are expected to resume since the short-covering rally has concluded. These sell-offs will benefit the American Dollar moving into November since the short-term resistance zone was rejected in recent weeks.

The descending Fibonacci Retracement Fan sequence “is well-positioned to force the USD/MXN into its support zone” located between 20.82 and 21.03; an extension into its next support zone between 19.89 and 20.27 is still possible “amid dominant breakdown pressures.”

With less volatility during the second wave of the pandemic, the peso is appealing to traders who are looking for safer investments moving at a moderate pace. Comparatively the USD continues to face bearish pressure due to economic uncertainty and the upcoming Presidential election.

By Surina Nath