The US dollar trading against the Mexican peso isn’t something that comes to mind immediately when trading forex, but it is a very dynamic pair when it comes to the fundamentals. After all, the Mexican peso is in fact a gateway currency if you will for Latin America, meaning that the peso is used as a proxy for the entire region. Quite frankly, if the Latin American region is expected to do well, then the Mexican peso will follow right along. Beyond that, we also have the fact that it is an emerging market, and therefore when it comes to trading EM currencies there are only a handful that are easy to find. The Mexican peso is one of them, right along with the Thai baht, South African Rand, and handful of others. Quite frankly, most retail brokerages won’t let you come in and start trading every minor currency on the planet so a lot of proxy trading is done with these currencies.
for more analysis: http://www.dailyforex.com
