The Canadian Dollar is trading at 16.33 against the Mexican Peso this morning, down -0.47% with a YTD change of 4.51%. The currency pair’s open rate was similar to their previous close at the 16.41 range. CAD/MXN is expected to move between 15.34 and 16.60 throughout the day, their 52-week range is forecasted to fluctuate between 15.28 and 18.18.
Over the last week, CAD/MXN has dropped from the 16.62 marks to the lower end of the 16.00 support level, losing the momentum gained at the beginning of the month. The currency pair’s exchange rate is now sitting at rates last seen in October 2020.
This time last year, CAD/MXN surged from the 14.00 mark to the 17.00 support level and is expected to stay above the 15.00 range moving into April.
This bullish loss can be attributed to CAD’s ongoing struggle to keep up with rallying oil prices but “domestic economic stimulus and higher commodity prices are among the longer-term themes supportive of the loonie” according to Rahim Madhavji, president of Knightsbridge.
Data from research organization, the Conference Board of Canada also reported that “Canadian consumer confidence rose in March by the most since last June.” With the rise of retail and restaurant sales, the loonie is anticipated to stay on the road to recovery as long as COVID-19 numbers are under control and lockdown restrictions continue to be lifted.
The Bank of Canada’s policy outlook is due tomorrow, after taking a look at Canada’s GDP data for January, “strategists say the central bank could reduce its bond purchases in April” to help stabilize CAD as Q2 approaches.
By Surina Nath