- Analytics
- News and Tools
- Market News
- USD/MXN: Options market signals further buying of Mexican Peso past 16.85
USD/MXN: Options market signals further buying of Mexican Peso past 16.85
USD/MXN licks its wounds at the lowest levels since December 2015, making rounds to 16.85 during early Asian session on Friday.
That said, the Mexican Peso (MXN) pair dropped in the last five consecutive days amid broad based US Dollar weakness, mainly driven by the concerns that the downbeat US inflation lcues will prod the US Federal Reserve (Fed) from lifting interest rates past July. Adding strength to the USD/MXN bearish bias are the downbeat options market signals.
That said, the one-month Risk Reversal (RR) of the USD/MXN pair, a measure of the spread between call and put prices, dropped the most in six days to -0.240 by the end of Thursday’s North American trading session.
In doing so, the options market figures defy the hopes of witnessing a corrective bounce in the USD/MXN price. It should be noted that the options market gauge prints the biggest weekly RR slump since early June with -0.327 mark at the latest.
Elsewhere, the US Dollar Index (DXY) remains on the back foot at lowest levels since since April 2022 ahead of the preliminary readings of July’s Michigan Consumer Sentiment Index, as well as the five-year Consumer Inflation Expectations.
Also read: Forex Today: Dollar's downward spiral continues
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
