USD/MXN Forecast Today 04/02:US Dollar Continues

(MENAFN- Daily Forex) The US dollar fell during the trading session on Tuesday against the Mexican peso to continue to overall strong downtrend that has been very reliable over the last few months. That being said, this is an interest rate play, and more/MXNThe US dollar fell during the trading session on Tuesday against the Mexican peso as we continue to see a lot of noisy behavior in general as the market is likely to continue to see a lot of noisy behavior. But I also recognize that we have a situation where traders will continue to look to the Mexican peso for more of a yield play in this pair as the yield differential still favors the Mexican peso far above the US dollar, making it enticing Dynamics and TargetsFurthermore, the pair tends to move in a downward trajectory if the US economy is going to continue to be a major factor here as traders will continue to look at the US economy doing fairly well as a reason for the Mexican peso to strengthen due to the fact that Mexico is the largest exporter into the United States that and the general US dollar weakness during the trading session, it does make a certain amount of sense that this pair continues to drop. The 17 pesos level underneath is probably your initial target and furthermore, I think we probably even go lower, maybe to 16.50 pesos or so. Short-term rallies, I think, continue to be nice selling opportunities in a market that has been relentlessly bearish for a long time. So, with that, I still favor shorting this market. I still believe that it is probably only a matter of time before traders start to look at each rally as a nice selling opportunity.

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