USD/MXN forecasts change all the time, affected by news events and relative sentiment towards the US and Mexican economies and this exchange rate is even more volatile than usual because of the uncertainties around the Coranavirus pandemic and the increase US interest rates.
USD/MXN – After hitting a near 2021 low at 19.7, in June the US Dollar has risen back up the important psychological level of 20 against the Mexican Peso towards the end of July.
A stronger US Dollar coupled with risk aversion spells danger for Emerging Market currencies and equities. Looking like a test of resistance at 21.20 to 21.70 first up. Support comes in at 20.30, 19.90 and 19.70.
In early June the Mexican peso had extended gains to below 19.7 vs the USD after election result were seen as less conducive to President Andres Manuel Lopez Obrador’s agenda bout constitutional changes impacting the energy sector and independent entities.
Still since the end of June 2020, the Mexican peso had gained around 10% against the dollar, the best performance among about 140 currencies tracked by Bloomberg. The peso had also delivered the No.1 carry trade — the gains made by borrowing dollars and buying short-term peso-denominated securities — a reward for investors with the stomach to go in after a precipitous 18% selloff in the first half of 2020.
Last week saw the US Dollar slowly but surely grind its way higher against all its Rivals. USD Forecasts
The foreign exchange market convention for USD/MXN is to quote Mexican peso as Peso per US dollar. Thus a higher USD/MXN rate actually means one peso is worth less, that is you can buy more peso for 1 USD.
You can read about other USD exchange rate forecasts here US Dollar Trends and Forecasts for 2021.
Whether the peso will rise or drop in the future against the US dollar is a difficult and the answer really depends on many factors. The best way to consider the current USD-MXN relative value is to check the change in the exchange over a range of periods to the present day. The below table does this for periods going back 10 years.
23 Jul 2021→
|0.9% ▼||1 Week|
30 Jun 2021→
|0.3% ▼||30 Days|
01 May 2021→
|1.8% ▼||90 Days|
30 Jul 2020→
|9.7% ▼||1 Year|
31 Jul 2016→
|6% ▲||5 Years|
02 Aug 2011→
|68.6% ▲||10 Years|
USD/MXN rate change to 30-Jul-2021 → 19.8817
Disclaimer: Please note that the currency forecasts and opinions of our authors should not be taken as a reference to buy or sell any financial product.