By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: Mexican Peso under pressure following IMF’s downward revision of GDP growth
Share
Notification Show More
Latest News
Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > Mexican Peso under pressure following IMF’s downward revision of GDP growth
Forex

Mexican Peso under pressure following IMF’s downward revision of GDP growth

News Room
Last updated: 2024/10/15 at 9:36 PM
News Room
Share
4 Min Read
SHARE

The Mexican Peso faced a significant decline against the US Dollar during the North American session, with the USD/MXN trading at 19.66 after rebounding from daily lows of 19.33. This downward movement was driven by a general risk aversion in the markets, which also impacted other risk-sensitive currencies. Traders in Mexico turned to US data for direction amidst a lack of economic updates in their own country. The Greenback gained strength as inflation expectations edged higher, further contributing to the Peso’s weakening.

On a broader scale, the International Monetary Fund (IMF) projected Mexico’s economic growth to reach 1.5% in 2024, with a further deceleration to 1.3% in 2025. The IMF attributed this slowdown to capacity constraints and tight monetary policy implemented in Mexico. The Institute also noted risks of inflation rising close to the Bank of Mexico’s 3% target, highlighting that inflation risks are tilted to the upside due to various factors such as economic slowdown in the US and geopolitical tensions.

In the US, the New York Empire State Manufacturing Index showed a disappointing figure for October, while inflation expectations remained unchanged at 3%. Additionally, San Francisco Fed’s Mary Daly hinted at the possibility of rate cuts in the future, boosting the USD amid a mixed economic outlook. Daly expressed cautious optimism about the economic landscape and suggested one or two rate cuts if economic forecasts align.

Looking ahead, the US economic calendar is packed with key events, including the Balance of Trade report on Wednesday, followed by Retail Sales, Initial Jobless Claims, Industrial Production, and more Fed speakers on Thursday. These releases are expected to offer further insights into the state of the US economy and could impact the movements of the USD/MXN currency pair.

The Mexican Peso’s recent decline to two-week lows against the US Dollar is a result of multiple factors, including the decrease in Consumer Confidence and the IMF’s less optimistic economic forecasts for Mexico. The IMF specifically highlighted uncertainties arising from a recent judicial reform that could affect contract enforcement and the rule of law predictability in the country. Additionally, Banxico’s survey indicated expectations of rate cuts by the central bank, further impacting the USD/MXN exchange rate and the overall economic growth projections for Mexico.

In terms of technical analysis, the momentum favors buyers in the USD/MXN pair, with the RSI indicating strength. The pair is eyeing higher prices, with resistance levels at 19.82 and 20.00. On the downside, support levels are at 19.61, 19.10, and 19.00, signaling potential areas of interest for traders. The overall outlook suggests further upward movement in the USD/MXN pair, driven by the prevailing market sentiment and economic factors influencing both currencies.

In conclusion, the recent movements in the USD/MXN pair reflect a combination of domestic and international factors impacting both currencies. The Mexican Peso’s vulnerability to market sentiment and economic indicators, along with the USD’s strength on varied economic outlooks, have contributed to the current trends in the currency pair. As traders continue to monitor key events and data releases in both Mexico and the US, the future direction of the USD/MXN pair remains uncertain, with ongoing developments likely to shape its trajectory in the coming days.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room October 15, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Top Cryptocurrencies to Invest in Now October 15 – MEW, Hedera, Fantom
Next Article Saudi Arabia struggles in World Cup qualifiers with scoreless tie against Bahrain
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

Ferrero’s Social Responsibility Project Kinder Joy of moving Beats Traditional PE Curriculum, Tapping into the Cognitive Functions, Motor Coordination and Life Skills of Students
Lifestyle July 14, 2025
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?