Wednesday, January 27, 2021 7:09 AM EDT
Canada and Mexico have light economic diaries today. The US dollar was rebuffed yesterday near CAD1.2780 and retreated to close on its lows just above Monday's lows (~CAD1.2680). Despite the downside reversal, follow-through selling was minor, and the greenback is trading around CAD1.2720 in the European morning (FXC). Ahead of the FOMC outcome, we expect the US dollar to come off and possibly return toward the lows (UDN). Similarly, against the Mexican peso, its initial rally yesterday was reversed, and the greenback settled on its lows, a little below MXN20.00. Since bottoming on January 21 near MXN19.55, the greenback has been holding above the five-day moving average found near MXN19.97 today. Maybe an inside day is the most likely scenario (yesterday's range ~MXN19.9350-MXN20.29)
Read more by Marc on his site Marc to Market.
Disclaimer: Opinions expressed are solely of the author’s, based on current ...
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Read more by Marc on his site Marc to Market.
Disclaimer: Opinions expressed are solely of the author’s, based on current market conditions, and are subject to change without notice. These opinions are not intended to predict or guarantee the future performance of any currencies or markets. This material is for informational purposes only and should not be construed as research or as investment, legal or tax advice, nor should it be considered information sufficient upon which to base an investment decision. Further, this communication should not be deemed as a recommendation to invest or not to invest in any country or to undertake any specific position or transaction in any currency.
There are risks associated with foreign currency investing, including but not limited to the use of leverage, which may accelerate the velocity of potential losses. Foreign currencies are subject to rapid price fluctuations due to adverse political, social and economic developments. These risks are greater for currencies in emerging markets than for those in more developed countries. Foreign currency transactions may not be suitable for all investors, depending on their financial sophistication and investment objectives. You should seek the services of an appropriate professional in connection with such matters.
The information contained herein has been obtained from sources believed to be reliable, but is not necessarily complete in its accuracy and cannot be guaranteed.
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