USDMXN

295
USDMXN

The USDMXN may be an option for medium/long-term investments, due to its relatively low volatility

trade online

The currency pair involving the US Dollar and the Mexican Peso is very popular, not only in Latin American countries. It represents the value of one US Dollar in terms of Mexican Pesos. The USDMXN market can be considered to be relatively stable, in other words peso is typically characterized by lower volatility than in the case of other currencies of emerging markets.

Because of this, it may be a currency pair suitable for medium/long-term investments in the FOREX market.
The Mexican economy is rather export-driven, due to its low production costs, specializing in machinery and mining. The main market for its products are the neighboring United States, meaning that its economy is highly dependent on the American economy. Mexico is the third largest supplier of crude oil to the US . Oil sector generates nearly 15% of the export earnings, and its importance is even greater for the Mexican
government, which obtains from this sector 40% of the government’s revenue.

Due to the enormous significance of the oil sector in the Mexican economy, the MXN may be considered to be a commodity currency as the US Dollar is, but the latter is also one of the major reserve currencies in the world in possession of all the most significant central banks.

The USDMXN market may react to economic factors from both the Mexican and United States economies. The Mexican peso is also vulnerable to the general sentiment of international investors, in relation to emerging market currencies.

Continue
Previous articleUSDZAR
Next articleEURGBP