German exports surprised to the upside, but this covered October where companies were gearing up for the holiday shopping season. More recent data suggests that exports may have slumped in November. The Euro didn’t react to this data point as forex traders are concerned with current developments and the future outlook. The EURMXN has paused its sell-off, but how will price action react to today’s Mexican inflation data? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.
Growth worries in Mexico persist, but inflation has remained at the Bank of Mexico’s 3.0% inflation target. Economists expected a minor decrease in inflationary pressures, but how will Mexico’s economy weather the extended trade war between the US and China? New tariffs may be applied in the trade war this Sunday, and while Mexico is positioned to take advantage of it, domestic concerns remain. Will bears extend their move in the EURMXN or will bulls step in? Today’s fundamental analysis will take a look at the upside potential as well as the downside risk in this currency pair.
Here are the key factors to keep in mind today for Euro trades:
- German Trade Balance & German Current Account Balance: The German Trade Balance for October was reported at a €21.5B. Economists predicted a figure of €19.3B. Forex traders can compare this to German Trade Balance for September which was reported at €21.2B. Exports for October increased by 1.2% monthly and Imports were reported flat at 0.0% monthly. Economists predicted a decrease of 0.3% monthly and 0.1% monthly. Forex traders can compare this to Exports for September which increased by 1.5% monthly, and to Imports which increased by 1.2% monthly. The German Current Account Balance for October was reported at a €22.7B. Economists predicted a figure of €20.0B. Forex traders can compare this to the German Current Account Balance for September which was reported at €24.9B.
- Eurozone Labor Costs: Eurozone Labor Costs for the third-quarter increased by 0.9% annualized. Forex traders can compare this to Eurozone Labor Costs for the second-quarter which increased by 0.6% annualized.
- Eurozone Sentix Investor Confidence: Eurozone Sentix Investor Confidence for December was reported at 0.7. Economists predicted a figure of -5.3. Forex traders can compare this to Eurozone Sentix Investor Confidence for November which was reported at -4.5.
Here is the key factors to keep in mind today for Mexican Peso trades:
- Mexican CPI: The Mexican CPI for November is predicted to increase by 0.83% monthly and by 3.01% annualized. Forex traders can compare this to the Mexican CPI for October which increased by 0.54% monthly and by 3.02% annualized. The Mexican Core CPI for November is predicted to increase by 0.23% monthly. Forex traders can compare this to the Mexican Core CPI for October which increased by 0.25% monthly. The Mexican Bi-Weekly CPI for the week ending November 30th is predicted to increase by 0.15% monthly and by 2.91% annualized. Forex traders can compare this to the Mexican Bi-Weekly CPI for the week ending November 16th which increased by 0.68% monthly and by 3.10% annualized. The Mexican Bi-Weekly Core CPI for the week ending November 30th is predicted to increase by 0.03% monthly. Forex traders can compare this to the Mexican Bi-Weekly Core CPI for the week ending November 16th which increased by 0.16% monthly.
Should price action for the EURMXN remain inside the or breakdown below the 21.2650 to 21.3485 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 21.3225
- Take Profit Zone: 21.0000 – 21.0500
- Stop Loss Level: 21.4200
Should price action for the EURMXN breakout above 21.3485 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 21.4200
- Take Profit Zone: 21.5850 – 21.6325
- Stop Loss Level: 21.3485
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Do you trade with one of the most trusted MT4 forex brokers? Sign-up with PaxForex today and join one of the fastest-growing trading communities in the forex market.
We are one of the fastest growing Forex Brokers in the Market. Trade with PaxForex to get the full Forex Trading experience which is based on...
- The Reliability on all Assets in the Market
- Trusted Worldwide for over a Decade
- Live Multi-Lingual Online Support 24/5
