The Mexican Peso performed well against the US Dollar today after losing for the past few days, with the USD/MXN pair slipping below 20.000 for the first time in days
Emerging market strategists were cautiously optimistic that the sector's commodity-linked currency rally would continue in coming months, but a much slower pace of vaccine rollouts will keep high-yield seekers nervous, a Reuters poll found on Friday. One-third of 45 strategists in the May 28-June 3 Reuters poll said the rally in commodity-related emerging market currencies would continue for six months while 14 said it would last up to a year. High-yielding currencies like South Africa's rand and the Mexican peso have ended four of the last six quarters on a stronger foot, boosted by commodity price rallies and as COVID-19 restrictions dented global trade.
Today we will talk about risk-on sentiment and how to take it into account when analyzing Crude oil and USDMXN.