USD/MXN
FOREX ExoticUS Dollar vs Mexican Peso.
Performance
2026-07-20 12:00 UTCUSD/MXN Chart
A descriptive read of USD/MXN across timeframes — trend, momentum and key levels. Educational market analysis, not a buy or sell recommendation. How to read charts →
Economic Calendar
Next 7 days · medium & high impact for USD, MXN
| Date / Time (UTC) | Currency | Impact | Event | Forecast | Previous |
|---|---|---|---|---|---|
2026-07-23 12:30 UTC | πΊπΈ USD | Unemployment Claims United States | 211K | 208K |
Contract Specifications
About USD/MXN
About USD/MXN
USD/MXN represents the exchange rate between the US Dollar and the Mexican Peso, one of the most actively traded emerging market currency pairs globally. Mexico is the United States’ largest trading partner, with over $800 billion in annual bilateral trade flowing across the border. The Mexican Peso is considered a liquid emerging market currency with relatively deep institutional participation, making it more accessible than many other EM currencies. USD/MXN has historically been influenced by oil prices (Mexico is a significant oil producer), US-Mexico trade relations, and Mexico’s monetary policy stance. The peso has also become one of the most popular carry trade targets due to Banxico’s historically high interest rates.
What Moves USD/MXN?
Banxico Monetary Policy
The Bank of Mexico (Banxico) has maintained relatively hawkish monetary policy, often keeping rates significantly above the Federal Reserve, making the peso attractive for carry trades. Banxico rate decisions and inflation forecasts are key events. When the interest rate differential favors Mexico, capital inflows support the peso and push USD/MXN lower.
US-Mexico Trade Relations
Trade policy between the US and Mexico, including USMCA dynamics, tariff threats, border policies, and immigration-related economic measures, can generate substantial volatility in USD/MXN. Political rhetoric during US election cycles often creates short-term spikes as traders price in potential policy changes.
Oil Prices
Mexico is a major oil producer, and Pemex (the state oil company) is a critical contributor to government revenue. Rising oil prices tend to support the peso through improved fiscal balances and trade terms, pushing USD/MXN lower. Falling oil prices have the opposite effect.
Risk Sentiment and EM Flows
As an emerging market currency, the peso is sensitive to global risk appetite and capital flows into EM assets. During risk-off periods, USD/MXN tends to spike as investors reduce EM exposure. However, Mexico’s geographic proximity to the US, deep trade integration, and relatively strong institutions make the peso more resilient than many EM peers during moderate stress episodes.
Trading USD/MXN
USD/MXN offers typical spreads of 3.0 to 8.0 pips with solid liquidity during North American trading hours (13:00-21:00 UTC). The pair produces wide daily ranges, often 100-200 pips, and can move sharply around Banxico meetings, US economic data, and political developments. Short USD/MXN positions can earn significant positive carry when Mexican rates exceed US rates, making it popular among yield-seeking traders. The pair responds strongly to both technical levels and fundamental catalysts, and its liquidity relative to other EM pairs makes it a preferred vehicle for expressing emerging market views.