This exotic currency pair has been in a bullish trend over the past few weeks, due mostly to USD strength. The news of the origin of a potentially dangerous coronavirus variant emerging in South Africa at the end of last week caused many countries to shut their doors on South African and other African travel, and strongly hit the price of Crude Oil on fears of lesser demand, of which Mexico is a major exporter, causing the Mexican peso to nosedive and send this pair sharply higher to a new 1-year high price on strongly above-average volatility.
Unless it is quickly discovered that the omicron variant should not be as problematic as feared, it is hard to see how Crude Oil and henceforth the Mexican peso will not make a further sharp fall over the course of this week.
The Japanese yen is stronger than the USD so short MXN/JPY will probably be a better trade if your Forex broker offers access to it.
Unless it is quickly discovered that the omicron variant should not be as problematic as feared, it is hard to see how Crude Oil and henceforth the Mexican peso will not make a further sharp fall over the course of this week.
The Japanese yen is stronger than the USD so short MXN/JPY will probably be a better trade if your Forex broker offers access to it.