{"id":147629,"date":"2019-05-14T10:41:10","date_gmt":"2019-05-14T14:41:10","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=147629"},"modified":"2019-05-14T06:42:38","modified_gmt":"2019-05-14T10:42:38","slug":"xagmxn-silver-mexican-peso-analysis-getting-ready-for-bank-of-mexico","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/xagmxn-silver-mexican-peso-analysis-getting-ready-for-bank-of-mexico\/","title":{"rendered":"XAGMXN Silver\/Mexican Peso Analysis: Getting ready for bank of Mexico"},"content":{"rendered":"
May 14, 2019<\/div>
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By IFCMarkets<\/a><\/strong><\/p>\n

Getting ready for the bank of Mexico meeting<\/strong><\/p>\n

In this review, we suggest to consider the Silver vs. MXN personal composite instrument (PCI). It reflects the price dynamics of silver against the Mexican peso. Will the XAGMXN quotations <\/a> grow?<\/p><\/blockquote>\n

Such dynamics means the rise in silver prices and the weakening of the Mexican peso. May 16, 2019 will be the next meeting of the Bank of Mexico. According to futures quotes, the probability of a rate reduction exceeds 75%. This can have a negative effect on peso dynamics. Inflation in Mexico is 4.41% in annual terms, which is above the target range of the Bank of Mexico (3% plus or minus 1%). However, the current rate is almost 2 times higher than this indicator and is now equal to 8.25%. It is expected to decrease to 8%. In turn, precious metals are becoming more expensive against the backdrop of increasing global political risks and another exacerbation of the US-Chinese trade war.<\/p>\n

\"XAGMXN\"<\/p>\n

On the daily timeframe, XAGMXN: D1<\/b> adjusted to the top of a 6-month low. It approached the resistance line of the downward trend, which needs to be pushed upward before opening a buy position. Most of the technical analysis indicators showed an uptrend signal. Further growth is possible if high demand for precious metals remains and the Bank of Mexico rate decreases.<\/p>\n