Jan 07, 2025 (MENAFN via COMTEX) --
(MENAFN - Daily Forex) The US dollar rallied slightly during the trading session on Friday gaining about 24 basis points as I record this. The market pulled back toward the 20.60 level and stabilized a bit.I think at this point we are trying to build up the necessary pressure to really take on the 21 Mexican pesos level a longer term perspective, this is a massive resistance barrier if we break through this, it\u0026#39;s going to be nothing but pain for the peso and probably the Mexican economy is generally where the rubber meets the road from a longer term standpoint. As I scroll out, you can see that once you break the 21 Mexican pesos level, you generally see a shot straight up in the air. Top Forex Brokers 1 Get Started 74% of retail CFD accounts lose money Read Review BrokerGeoLists({ type: \u0027MobileTopBrokers\u0027, id: \u0027mobile-top-5\u0027, size: SidebarBrokerListAmount, getStartedText: \u0060Get Started\u0060, readReviewText: \u0060Read Review\u0060, Logo: \u0027broker_carrousel_i\u0027, Button: \u0027broker_carrousel_n\u0027, });Rates and RiskInterest rate differential still favors Mexico to a point, but really the recessionary problems that Mexico has continues to be an issue. Furthermore, you get a reasonable return in the United States and currency appreciation, so money is going from Mexico to America. Under normal conditions and before Donald Trump takes office, you have a lot of remittances that come back from the United States back into Mexico to support loved ones. That does have a quantifiable difference in this USD/MXN pair. It does affect it, you also have to keep in mind that there are talks about tariffs. As long as that\u0026#39;s the case, it\u0026#39;s really going to threaten the Mexican economy. Having said that, there probably is a solution eventually, because quite frankly, I don\u0026#39;t think the Mexicans have a choice. But in the meantime, it looks like we\u0026#39;re just kind of killing time waiting to see what happens when Trump takes office in about 17, 18 days. Short-term pullbacks almost certainly will find plenty of support at the trend line that I have on the chart, as well as the 50-day EMA. Furthermore, you also have the 20-Mexican peso level that has been historically important and has proven itself recently. I still like the idea of buying dips. I don\u0026#39;t like the idea of shorting this pair. Quite frankly, you would have to see the US dollar lose strength across the board for the Mexican peso to suddenly pick up a little bit of a tailwind against it. EURUSD Chart by TradingView
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COMTEX_461625039/2604/2025-01-07T05:44:57
