Forecasts for EUR to MXN
The recent exchange rate forecasts for EUR to MXN reflect a complex interplay between geopolitical factors, economic indicators, and market sentiment. Analysts note that the EUR has softened against a stronger US dollar, as recent positive GDP data from the Eurozone failed to provide lasting support. The euro is currently positioned at approximately 22.13 MXN, marked as a 14-day low but still slightly above its three-month average of 21.91 MXN. This indicates a volatile trend, with fluctuations ranging between 21.02 and 23.08 MXN.
In the Eurozone, the upcoming Consumer Price Index (CPI) figures are crucial; if inflation shows signs of cooling, it may further pressure the EUR, while persistent price pressures could help stabilize it. The impact of the ongoing war in Ukraine also weighs heavily on the euro's stability, particularly amid fluctuating energy prices. With oil now resting at 90-day lows around 61.29 USD—13.2% below its three-month average—any sustained decrease in oil prices could exacerbate inflationary pressures in Europe, potentially weakening the euro further against the peso in the future.
Concurrently, the Mexican peso has exhibited volatility spurred by the recent tariff discussions between the US and Mexico. Tariff negotiations have led to fluctuations in the MXN, particularly following comments from President Claudia Sheinbaum about possible retaliatory measures against the US. The peso did experience a recovery after indications that the US may take a less aggressive stance on tariffs, which reassured traders and sparked optimism over potential negotiations.
Experts suggest that the outlook for the MXN remains contingent upon the evolving trade relationship with the US and the extent of any retaliatory measures Mexico may implement. Additionally, the sentiment in the risk markets continues to impact the peso significantly, as it tends to rise when broader market confidence increases.
Overall, market expectations suggest further volatility in the EUR to MXN exchange rate, where shifts in both European economic indicators and Mexico's trade environment will play pivotal roles in shaping trends moving forward.
