Forecasts for CAD to MXN
The CAD to MXN exchange rate currently reflects mixed sentiment, influenced by both oil price fluctuations and ongoing geopolitical developments. As of the latest data, the CAD is trading at 13.89, which is 1.6% below its three-month average of 14.12. Over recent weeks, the CAD has remained within a stable range of 13.83 to 14.66, demonstrating limited volatility.
The Canadian dollar (CAD), often referred to as the "loonie," is significantly impacted by oil prices, given Canada's position as a major oil exporter. Recently, oil prices have shown volatility, currently pricing at 69.36 USD per barrel—3.8% above its three-month average of 66.79. Given that the oil market has exhibited a wide trading range of 60.14 to 75.02, analysts suggest that continued oil price declines could lead to further weakening of the CAD if this trend persists.
On the Mexican side, the peso has experienced volatility as traders navigate the uncertain landscape of U.S. tariffs on Mexico and the broader impact on trade relations. Following a recent agreement between the U.S. and Mexican leadership, where President Claudia Sheinbaum outlined measures in response to tariffs, the peso showed signs of recovery, lifting risk sentiment in the currency market. However, analysts caution that the situation remains fluid, and steps taken by both countries regarding trade may heavily sway the peso’s short-term trajectory.
Market experts predict that both currencies will remain influenced by economic data releases and overall global risk sentiment. As the likelihood of U.S. tariff adjustments remains on the table, the strength of the Mexican peso may benefit, while the CAD's performance could hinge on oil price movements and decisions from the Bank of Canada concerning interest rates. With such intertwined dynamics, traders are advised to monitor these factors closely when considering CAD to MXN transactions moving forward.