The US added more Chinese firms to its blacklist which has dampened hopes for an end to the trade war with China. High level talks will be held in Washington this week, but following the US moves the mood has soured. Forex traders will also wait for the release of minutes from the last Fed meeting where the central bank cut interest rates by 25 basis points. Are more interest rates cuts in the pipeline and how will this impact the USDMXN? Today’s fundamental analysis will explore price action in both directions.

The Mexican economy is heavily dependent on trade, especially to its Northern neighbour. Anti-China sentiment is on the rise in the US Congress after the NBA’s Houston Rockets GM tweeted a supporting message to Hong Kong which he later deleted amid pressure from China. Can Mexico benefit from the US-China trade war? Mexican inflation data will be released later today, how will price action in the USDMXN react? Subscribe to the PaxForex Daily Fundamental Analysis and grow your balance trade-by-trade.