(MENAFN - DailyFX) USD/MXN Forecast: Neutral Advertisement
The Mexican Peso hasn t fared too well this past week and is down 2.7% this week against four major currencies (USD , GBP , EUR , and JPY ).
USD/MXN has been able to consolidate a push above the 20 Pesos mark, gaining traction as the pair managed to break above the 76.4% Fibonacci at 20.18. The main objective for bulls is likely to be a push above the yearly high at 20.60, before attempting to reclaim the 21 Pesos mark.USD/MXN Daily chart
Some of the weakness attributed to the Mexican currency this week has to do with the power outages seen in Texas. Mexico is a big importer of natural gas from the United States and a reduction of roughly 75% in Texas pipelines has left the Latin American country concerned about its economic outlook as power shortages could make the recovery from the Covid-19 pandemic much more fragile.
By Reuters Staff
4 Min Read
MEXICO CITY (Reuters) - Mexico’s president asked consumers on Thursday to use less electricity in the evenings as a measure to help overcome shortages of natural gas from Texas, which is seeking to ban exports of the fuel during freezing weather.
FILE PHOTO: Light poles are pictured without power during an outage in Mexico s electricity network, in Ciudad Juarez, Mexico February 15, 2021. REUTERS/Jose Luis Gonzalez/File Photo
Mexico generates the majority of its power from natural gas, mostly imported from the United States. Latin America’s second-largest economy has reeled as imports via pipeline from Texas dropped by about 75% over the last week, causing billions of dollars of losses on power outages and factory closures.
MEXICO CITY (Reuters) - Mexico's president asked consumers on Thursday to use less electricity in the evenings as a measure to help overcome shortages.
Switch off lightbulbs: president asks Mexicans to ration power as Texas limits fuel reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.