September 14, 2023

Unveiling Exchange Rates: A Comprehensive Comparison of USD and MXN

Despite the risks, one of the best trade investment strategies is diversifying into the forex exchange to trade various currencies. To earn from the market, you must understand various factors such as economic performance and geopolitics issues, and above all, you must learn the trading charts to understand currency performances.

The success secret is to trade in the top-performing and fast-growing currencies such as pesos, guaranteeing more value. 

The value of pesos has increased exponentially, and so have the preferences of many investors who understand the significance of this growth on their investment portfolio.

If you are new to the forex market and do not understand the currency trade trends, start by including some pesos and dollars in your trade portfolio. The USD to MXN trades can guarantee a good return and stable investment; if uncertain, here is proof. 

The USD and MXN Chart Analysis

Since 2015, experts have discussed the rise of pesos against major currencies, especially the dollar, making it one of the future stable currencies for global trade and forex investments. During this period, the highest recorded value of pesos to the dollar was 21.911 on 26 November 2021. The average exchange value analysis reveals that between 2016 and 2023, the pesos to dollars traded between 17.87 and 18. 69.

The growth was rapid between 2016 to 2022, when it slowed to trade at an average of 17.76. From 2016 to 2023, the average trade value was 18.69, 18.91, 19.22,19.25,21.32,20.81, 20.17, and 17.87, respectively. 

The Last 52 Weeks Analysis

When focusing on the market exchange rates, you need to understand the performance of the dollar vs peso in the last 52 weeks; this is enough duration to understand the currency trend to make an easy decision on the best trading strategy. Therefore, analyzing the USD to MXN conversion enables you to understand this year's currency performance before investing and helps you forecast its future performance.

Based on the last 52 weeks, the USD to MXN conversion was between 16.623 and 20.5813, meaning the highest was 20.5813 and the lowest was 16.6263. One notable thing here was that the peso gained fast on the dollar, and it is estimated that it increased by 6.74% this year.

Forecasting the Future of USD and MXN

Market analysis this year indicates that the Pesos are gaining fast on the dollar, hence a good investment opportunity; however, as a forex trader and investor, the greatest focus is to consider a currency that will be stable even in the future. Due to such needs and concerns about the future, a forecast can reveal more details based on factors like economic performance to determine currency stability.

The performance of the dollar vs. pesos is likely to retain the same growth trend, i.e., the pesos is likely to gain and remain relatively stable vs. the dollar. It indicates that the pesos will remain at its all-time high performance. The value should be estimated to be between 16 and 20, meaning traders and investors can rely on the pesos as a stable currency.

However, it is not expected to gain past the value of 21 because the dollar is also gaining stability. As the interest and exchange rates become stable, the dollar is becoming stable; therefore, the value of pesos will likely not be higher than where it is currently. Still, the dollar is the dominant currency and controls major global trades, making it stable against all the currencies and a perfect currency to limit your forex risks.

What Shapes the Future of USD vs. MXN

The value of USD to MXN will depend on various factors; most are economic and partially geopolitical factors, mainly speculated unless they occur. The Pesos' current strength and performance are driven by the improving Mexican economy as a major producer of various goods, especially agricultural goods. As Mexican export value and quality rise, the peso's value will remain high and stable against the dollar.

Suppose the American economy faces similar issues as it did previously. In that case, it is estimated that the value of pesos may rise above the value of 21 in the exchange rate market. Therefore, as a forex trader, you need to be keen on the economic performances in these two countries and use the changing economic dynamics to make the best trade decision in anticipation of future profits.

When the two economies are relatively stable and growing progressively, the best idea is to trade in both currencies.

The next factor is the concept of super pesos, a term formulated as many traders analyzed the performance of pesos vs. the dollar in the last eight years. From the trend, it is notable that the peso has been one of the currencies significantly gaining against the dollar and other currencies.

As long as it dominates the trade in Mexico and the exports from Mexico remain at an all-time high, you should expect the value to be high against the dollar.

Another factor shaping the trade is de-dollarization, which means the preference of other currencies for trade instead of the dollar.  The dollar has dominated global trade; however, pesos will remain stable against it as it falls in trade preferences and perhaps gains additional value.

This can be mainly attributed to the changing geopolitics, global alliances such as the rise of BRICS, and national allegiances that may not favor the dollar.


As the peso continues to gain on the dollar, it is fast becoming one of the stable currencies for forex trade investors to diversify their portfolios. However, you should be updated with the changing economic and geopolitical factors, which may help you profit or lose based on the impacts. Finally, read about the forecasts and do your analysis and interpretation to make better trade decisions.

Tags: USA
Categories: News





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