Forecasts for CAD to MXN
According to recent market analysis, the CAD to MXN exchange rate is expected to be influenced by several factors in the near future. The Canadian dollar has been struggling against the US dollar, mainly due to the risk-on and risk-off environments in financial markets. This is despite the fact that both the US and Canadian economies are strongly correlated. Continued housing price declines and adverse wealth effects in Canada could put further negative pressure on the Canadian dollar in 2023.
On the other hand, the peso's fortunes are closely connected to the oil market, as oil is one of Mexico's top exports. The recent surge in oil prices could potentially support the Mexican peso. Additionally, cash remittances to South America, including Mexico, have defied predictions of a significant drop due to the COVID-19 pandemic. Remittance levels have been surging, which could contribute to a stronger Mexican economy and potentially lead to a stronger peso.
Taking into consideration the recent CADMXN price data, the CAD to MXN exchange rate, currently at 13.00, is 2.1% above its 3-month average of 12.73. It has been trading in a relatively stable range of 6.3% from 12.31 to 13.09. As Canada is a major oil exporter, it's worth noting that the Brent Crude OIL/USD price data shows that oil prices, currently at 95.14, are 11.4% above their 3-month average of 85.37. Oil prices have been highly volatile, ranging from 72.26 to 96.61.
Overall, based on the information provided and the market view, while the Canadian dollar may face some downward pressure due to housing price declines, the Mexican peso could potentially benefit from the recent surge in oil prices and positive remittance levels. However, it's important to keep in mind that currency exchange rates are subject to various unpredictable factors and can fluctuate rapidly.
