USD/MXN (US Dollar / Mexican Peso)

📜 History

The peso is one of the oldest currency names in the Americas, used since colonial times. In 1993 Mexico redenominated its currency by removing three zeros. In 1996 the word 'new' was dropped from the name. Mexico let the peso float freely in December 1994, after a currency crisis. The Tequila Crisis of 1994–1995 caused a steep fall in the peso, and a large US-backed support package followed in 1995. NAFTA, in effect from 1994, strengthened trade ties with the US, and USMCA replaced it in 2020. Later shocks, including the 2008 financial crisis, the 2016 US election and the 2020 pandemic, caused sharp swings in the pair.

⚙️ What moves the price

• →Interest rate decisions by Banco de México and the US Federal Reserve. A wider rate gap usually supports the peso.
• →Strength of the US dollar, measured by the dollar index, and global risk sentiment.
• →Trade with the US and USMCA news, since Mexico exports heavily to its northern neighbour.
• →Mexican inflation and GDP data, plus US jobs and inflation reports.
• →Oil prices, which affect Mexico's energy trade and public finances.

Character

• •Higher volatility than major pairs such as EUR/USD. Moves can be sharp.
• •Tends to weaken in risk-off periods and recover when appetite for risk returns.
• •Often used in carry trades, which can amplify moves.
• •Spreads widen and liquidity thins outside main trading hours.

When to trade

• ✅The US and Europe session overlap, about 13:00–17:00 UTC, when liquidity is highest.
• ✅Around scheduled Banxico and Fed announcements, with caution.
• ✅Mexican market hours, roughly 13:00–21:00 UTC.

When not to trade

• ⛔Late Asian hours and weekend gaps, when liquidity is low and spreads are wide.
• ⛔Right before and during major central bank decisions or sudden US political headlines.
• ⛔Trading with high leverage. Peso moves can exceed stop-loss levels.

Our verified setups

Latest closed signals

• SELL · H1 · SL29/10−$111
• BUY · H4 · SL19/10−$106
• BUY · H1 · TP514/10+$492
• BUY · H1 · TP509/10+$495
• SELL · H1 · SL08/10−$108

📊 Weekly report

Simulation: $10,000 deposit, $100 risk per trade. Pips — price movement; $ — result at fixed risk.