#USDMXN Forecast: Panic Selling Continues to Grip Mexican Peso (5 June 2024)
The US dollar has shot straight up in the air against the Mexican peso as economic numbers in the United States continues to falter. For those of you who are new to the trading world, it probably doesn’t make any sense but if you think about it long enough, it does make a certain amount of sense that the US dollar actually performs better in poor economic conditions. It doesn’t matter that the US economy is slowing down as far as the US dollar is concerned in this pair. What does matter is that Mexico is an exporter to the United States and is currently the largest exporter in the world to the USA. Because of this, it’s the same thing as owning a store and having your clients lose their job. You can’t sell to somebody who isn’t buying. At this point, it looks like the United States could be slowing down, and that has an outsized effect on the Mexican economy. Swap Works Against You Keep in mind that the interest rate swap at the end of the day certainly favors the Mexican peso, so if y