bridge21: December 21, 2020 weekly update
Monetary policy shenanigans in Mexico, high volatility, and new all-time highs for Bitcoin!
USD:MXN plummeted below 20:1 as Mexico announced a surprise “reprieve” on law requiring Banxico to buy US Dollars that they had just announced the prior week.
The USD:MXN rate plummeted from over 20:20 MXN to 1 USD to the 19:1 range on this news, as politics in Mexico has a destabilizing effect on the Peso. Today, the rate surged to nearly 20.6 MXN to 1 USD, before plummeting to below 20:1 levels.
We still think the trend is up short-term, but expect “surprises” from insiders and lawmakers in Mexico as their unpredictable policy changes impact currency markets and destabilize the Peso.
Bitcoin breaks through to new all-time highs!
We expect higher prices from here!
Longer-term USD:MXN rate forecast
Our long-term forecast is still higher for the USD:MXN exchange rate.
Happy Holidays everyone!
Best regards,
Will
The content in this article is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. While we took care to share correct information from reputable sources, bridge21 cannot guarantee the accuracy or timeliness of the information.
