INSUBCONTINENT EXCLUSIVE:
The Mexican peso traded at 20.47 per US dollar this morning, reflecting market caution as investors weigh the impact of looming US tariffs
and weak domestic economic indicators.The peso has struggled to regain momentum, hovering near recent lows, as Mexico braces for the
implementation of 25% tariffs on its exports to the United States tomorrow
President Trump confirmed last week that the tariffs, initially delayed in January, will proceed.This announcement has heightened
The country is already grappling with a widening trade deficit of $4.55 billion in January
The USD/MXN pair climbed to a high of 20.54 last week before easing slightly today
Analysts note that technical resistance at 20.50 remains a key hurdle for further peso weakness, while support at 20.00 could provide
stability if sentiment improves.Mexican Peso Holds at 20.47 Amid Tariff Concerns and Weak Economic Data
(Photo Internet reproduction)Market activity has been subdued, with muted inflows into peso-denominated ETFs as investors adopt a
sentiment has been dampened by geopolitical uncertainties and slowing growth in major economies
Technical analysis indicates a bullish bias for USD/MXN, with the pair trading above its 50-day moving average at 20.45.Momentum indicators,
such as the Relative Strength Index (RSI), suggest further upside potential if the pair breaks above resistance at 20.93
However, failure to hold current levels could trigger a pullback toward the 100-day moving average at 20.24.Market participants remain
Others see potential resilience if US-Mexico negotiations yield favorable outcomes or if domestic reforms boost investor confidence.As the
tariff deadline approaches, traders will closely monitor developments in US-Mexico relations
