# Mexican Peso Price Analysis: USD/MXN rebounds sharply from two-month lows, outlook turns bullish - Forex Crunch

> USD/MXN bounced sharply on Thursday from a low of 21.81, the lowest since May, to trade near 22.22 after the Fed updated its policy strategy and US yields rose. Analysts said a close above 22.25 would shift the short-term bias to bullish for the pair.

- Date: 2020-08-27 · published 2020-08-27T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/51832-mexican-peso-price-analysis-usd-mxn-rebounds-sharply-from-two-month-lows
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

A firmer dollar against the peso raises Mexican feed costs for importers of corn, soymeal and other ingredients, while a weaker dollar would ease them. The move is a currency-only update with limited direct effect on grain prices.

## Read by commodity

- DXY: bullish ▲
- USDMXN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-04-16 | [USD/MXN Price Analysis: Mexican peso drops as Fitch downgrades Mexico to BBB- — Octa](https://feedsoft.ai/events/53856-usd-mxn-price-analysis-mexican-peso-drops-as-fitch-downgrades-mexico-to-bbb-octa.md) | +0.7% | +0.4% |
| DXY | 2019-07-31 | [USD/MXN rebounds sharply from weekly lows toward 19.20 after Fed cut rates — Octa](https://feedsoft.ai/events/58324-usd-mxn-rebounds-sharply-from-weekly-lows-toward-19-20-after-fed-cut-rates-octa.md) | +0.9% | +1.8% |
| DXY | 2018-08-28 | [USD/MXN reverses sharply and rises back above 19.00 - Forex Crunch](https://feedsoft.ai/events/63759-usd-mxn-reverses-sharply-and-rises-back-above-19-00-forex-crunch.md) | +1.4% | +0.4% |
| DXY | 2023-05-11 | [Australian dollar analysis: AUD/USD drops sharply as US data slows \| FOREX.com Singapore](https://feedsoft.ai/events/36207-australian-dollar-analysis-aud-usd-drops-sharply-as-us-data-slows-forex-com.md) | +0.9% | +0.8% |
| DXY | 2018-08-10 | [It took Turkey to send EUR/USD to new 2018 lows - Forex Crunch](https://feedsoft.ai/events/11067-it-took-turkey-to-send-eur-usd-to-new-2018-lows-forex-crunch.md) | +1.1% | +1.1% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/08/27/mexican-peso-price-analysis-usd-mxn-rebounds-sharply-from-two-month-lows-outlook-turns-bullish/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.