The options market suggests that the Mexican Peso will experience additional decline, going beyond 17.00, with the current exchange rate standing at 17.2030.
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
USD/MXN stays defensive around 17.20 amid the early hours of Wednesday’s Asian session, after posting the biggest daily jump in a month to extend the previous week’s rebound from the lowest level since 2016.
In doing so, the Mexican Peso (MXN) pair justifies the options market signals to pare recent gains as traders brace for Fed Chair Jerome Powell’s bi-annual Testimony, up for publishing on Wednesday, as well as Thursday’s Banxico Interest Rate Decision.
That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, prints the biggest daily jump in a monthly by flashing a 0.112 figure, up for the second consecutive day, per the latest options market data from Reuters. With this, the USD/MXN pair’s weekly RR snaps the four-week downtrend with the 0.150 mark.
The Mexican Peso pair’s consolidation might have also taken clues from the pre-event consolidation, as well as the market’s latest risk-off mood that underpinned the US Dollar’s haven demand.
Also read: USD/MXN: MXN surrenders to USD amidst crucial week for Banxico decision, Fed’s Powell speech eyed
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
