EURMXN Forecast – December-18-2023


In today’s comprehensive EURMXN forecast, we will first scrutinize the current economic conditions in Mexico. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURMXN pair.

EURMXN Forecast

FxNews – The currency pair (Euro to the Mexican Peso) is currently trading within a broad range, as highlighted by the yellow box on the daily chart. Despite some uncertainty indicated by the RSI indicator, the overall trend for EURMXN appears to be bearish, remaining within a bearish channel. Through our technical analysis, we observe that as long as the pair stays below the 38.2% Fibonacci resistance level, a downward trend is likely. In this context, the 78.6% Fibonacci resistance level may emerge as the next target for bearish movements.

EURMXN Forecast - December-18-2023

EURMXN Forecast – 4H Chart

However, this technical analysis would be negated if the EURMXN price breaks above the 38.2% resistance level. This key level is reinforced by the upper boundary of the bearish channel, making it a significant point to watch in the EURMXN forecast.

Analyzing Peso Trends: Inflation and Policies

Reuters – The Mexican Peso is hovering around 17.2 against the USD, influenced by a mix of the Federal Reserve’s softer stance and the Bank of Mexico’s (Banxico) tighter monetary policy. Following the Federal Reserve’s decision to maintain interest rates, marking the third consecutive meeting without a change, the U.S. dollar saw a retreat. Concurrently, Banxico, in its December 2023 meeting, opted to keep its benchmark policy rate at a record 11.25%.

This decision aligns with the rise in November’s inflation to 4.32%, predominantly due to non-core elements, while the core inflation rate lingered high at 5.30%. The 2023 outlook suggests a reduction in overall inflation but an increase in core inflation rates. Additionally, indicators like the Purchasing Managers’ Index point to sustained economic growth, and Industrial Production figures have surpassed forecasts, painting a positive picture for Mexico’s economic future.

  • 18 December 2023
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