Factors One Should Consider Trading Maxican Peso in Forex Trading

When it comes to Forex trading, there are many currencies available to trade. These currencies are grouped into various categories based on their level of trade activity. Maxican Peso (MXN) is currently ranked as the eighth most liquid currency in the world. While it might not be as widely traded as the USD, EUR, or JPY, it is still highly liquid in the markets of Latin America. In recent years, MXN has attracted traders from all over the world and has become a vital financial instrument. It has transformed from being an underdeveloped currency to one of the ten most traded currencies.

Best Time to Trade:

If you want to trade MXN, the best time to do so is in the early morning when the market opens. This is when economic activities and news flow in a smooth and steady manner, making it the most optimal time to trade Peso.

Preferred Pair:

The MXN is preferred for its pairing with other currencies. The USD/MXN pair is the most widely traded currency pair involving the Peso. Most Peso trades are done through this pair, which gives both short-term and long-term trading opportunities. This pair is traded constantly from Sunday evening to Friday afternoon in the USA, and the price and value of this currency pair can shift rapidly during a day.

Price Catalysts:

The value and price of a currency depend on the country’s economy. Mexico ranks ninth in the world’s largest oil-producing countries. As such, the economy is linked to its natural resources, especially crude oil and natural gas. The MXN is also associated with the Colombian Peso (COP) and the Brazilian Real (BRL). This means that any change in the price of natural gas and crude oil will affect the futures markets and the economy of Mexico. Similarly, the weekly report of the USA related to oil inventory also affects the price movements of USD/MXN.

Economic Releases:

The suitable trading time for the Peso is in the early morning when economic data is announced and released between 9 am to 10.30 am in Mexico. This 30-minute period before, and the 3-hour period after the release of economic data, is a crucial time for profitable Peso trades. Since the trading day in the USA starts at the same time, one can witness the shift in both currencies.

Equity Exchange Time:

The equity exchange time is also the same time when the New York Stock Exchange and Chicago Futures market open. This enhances the volume of trade in this currency pair.


The European Central Banks can also affect the trade of USD/MXN, particularly when the currency pair of EUR/USD undergoes a significant change. Thus, the best time for Peso trade is in the early morning, which is linked with its economy.

Authored by Ahsan Khan

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