USD/MXN - currency ratio reflecting the interdependence of currencies US and Mexico: US dollar and Mexican peso.
Definition
The presented currency pair is not a classic for the Forex market. USD/MXN is one of the most popular currency pairs of the "exotic" group. This ratio reflects the dependence of the peso on the dollar and shows how much Mexican currency can be purchased for one American dollar. In this case, the US dollar acts as the base currency, and the peso is a convertible currency. The quotes of this currency pair depend on a number of factors. In the case of the dollar, it depends on political events and oil prices. In the case of the peso, it depends on the economic situation in the country and to a greater extent on the private sector of the economy. The exchange rating of the pair is also influenced by the sovereign rating of Mexico and the state of the world financial markets.
Indicators of the currency pair
This pair has a high volatility, high value spread and a wide range of movement during the trading day. The spread of this pair can reach 100 items.
The peculiarity of the currency pair
The presented currency pair is beginning to gain significant popularity. Improving the standard of living of the population of Mexico, increasing the credit leverage countries, GDP growth and other macroeconomic indicators suggest that the liquidity of this currency pair will continue to increase.
Other information
A number of experts claim that USD/MXN is one of the most liquid pairs in the "exotic"group.