USD/MXN Trading forecasts and signals

A fairly rare currency pair on Forex is the US Dollar – Mexican Peso (USD/MXN). The instrument is characterized by one of the highest levels of volatility among Forex currency pairs (up to 3000 points or more per day).The highest level of volatility and the corresponding spreads scare off most inexperienced traders and lovers of positional trading with weak nerves and a small deposit size, but scalpers (primarily from North and South America) they attract good prospects to get a big and fast profit.With price movements of up to 3000 points per day or more, a relatively accurate forecast for short periods of time becomes meaningless and, practically, impossible. On charts with values less than one hour, only scalpers trade on the Dollar-Peso pair. However, for most other traders, this style is uncharacteristic, and they, before entering the market, want to have logically justified reasons for this in the form of a forecast that they can rely on when choosing a direction.USD/MXN exchange rate online – live chart with indicatorsThis currency pair is characterized by ultra-high volatility, even greater than that of the South African Rand, the price move per day can exceed 3,500 points. According to the days of the week, USD/MXN always shows the greatest activity on Wednesday, and not on Thursday, like most other pairs.In total, the upward trend has been clearly visible on the long-term chart since 1995, when the dollar soared from 3.3-3.5 to almost 8 pesos after Mexico entered the free trade zone with the United States and Canada.Read more: USD/CNH - description, characteristics, forecasts and feautures of pairGeneral characteristicsIn terms of the output of quotes, the pair does not stand out in any original way among others: they are displayed in standard form up to four (19,9016) or five (19,90160) decimal places, depending on the trading terminal (the more common variant with four characters). By the location of the tickers, it is immediately clear that the pair is directly quoted: the main currency here is the US dollar, and the convertible currency is the Mexican peso.Mexican economy and currency are raw materials, and up to a third of the country's state budget revenues are oil revenues, which in recent years has clearly played into the hands of the peso, and the dynamics of the pair's movement clearly reflects this.However, not everything is so bad in the metals market (primarily gold, silver and copper), prices, on the contrary, have recently been kept at a high level, restraining the growth of the pair.Analytics and factors of influence on which the course dependsThe USA and Mexico are neighbors and trading partners under NAFTA, their economic and cultural influence on each other is very great. The United States invests heavily in the Mexican economy. Mexican investors also operate in the United States, but their degree of influence is less significant. First of all, Americans invest in the extraction of oil and minerals, but also in industry, for example, the assembly shops of automobile plants, since labor in Mexico is much cheaper.By sectors, Mexico's economy now looks like this: trade and services account for the main place – about 60-62% (officially), but taking into account the shadow sector, which occupies another 8-10%, in total, we can say that this figure is approximately 70%. The entire industry and construction account for about 24-27% of GDP, and agriculture accounts for almost 4%. Mexico has a rich history and unique culture, which attracts many tourists from all over the world to the country. These are the ancient Aztec pyramids in Tenochtitlan or Teotihuacan, and simply the unique nature of the country, all this attracts millions of tourists and billions of dollars of income.Read more: USDPLN - description, characteristics, forecasts and feautures of the pairFor the USA , the analysis of the economy by sector gives approximately the following data:79.6% of GDP is accounted for by trade and services;About 19.2% is provided by industry;The share of agriculture remains less than 1.5%.Mexico is rich in oil, gold, silver, copper and other minerals, so the chart of the Dollar-Peso pair strongly depends on the prices of raw materials (mainly oil).The correlation of the USD/MXN daily chart with other currencies and stock indices is not as high as that of some other financial instruments, but in order to build a full-fledged analysis of the pair, it must be taken into account by the trader before entering the market.Oddly enough, but of the currency pairs, at the moment, the largest correlation (inverse) exists for the peso with the Scandinavian NOK/SEK cross-pair – -76.7%, as well as with the US30 – -71.4% and US500 – -62.5% indices, and in addition, with USD/HKD – -64.8%.The maximum direct correspondence of USDMXN is now observed with the Euro-Pound – 72.8%, Euro/Franc (Swiss) – 72.7%, as well as the IT40 index – 69.6% and EUR/SDG – 61.9%.When the timeframe scales up, the correlation percentage increases, and when it decreases, it decreases accordingly. So, if we take a period of one month for a time interval, then the similarity with some other charts (USD/TRY – 96.6%; USD/CNH – 94.2%; USD/PLN – 92.4%, etc.) may already exceed 90%.You can always check the information about the degree of correlation of the US Dollar – Mexican Peso pair with other charts (and it is necessary before opening a deal) on a live chart by connecting two or more currency pairs to it at once. For greater clarity, you can set different colors and settings for price lines.Read more: USDZAR - description, characteristics, forecasts and feautures of the pairUSDMXN AnalysisMainly, before opening positions on the peso, it is necessary to look at the prices of oil, gold, silver, as well as shares of American and Mexican corporations and stock indices: if raw materials or Mexican stocks go up, it means that the peso will strengthen and the pair will go down; and vice versa, if American securities become more expensive, and raw materials are getting cheaper against the dollar, then we should expect the growth of USD/MXN in the very near future.Despite all the wealth of minerals, Mexico is a rather poor country, with a high level of unemployment, and, accordingly, corruption and crime in general, especially in the north of the country, where flows of illegal migrants, smuggling and drug trafficking have been taking place for many decades.As for ready-made analytics from brokers, it is quite difficult to find it in the Russian-speaking segment of the Internet for this pair due to the relative rarity of those who want to trade it, but there are still fans of the Mexican currency on trading forums.Features of the currency pairToday, the difference in interest rates between the Fed (0.75%) and the Central Bank of Mexico (6.25%) allows using this currency pair in the carry-trade strategy, since in recent years the long-term trend has been generally bullish.The Price Action analysis and trading systems work perfectly on USD-MXN, as well as the Dollar-Peso pair allows scalping, which will attract fans of short-term trading strategies that allow you to quickly get such a profit on this instrument, which can significantly exceed the income on the main Forex currency ...