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.