<\/p>\n
\n Share:<\/span><\/p>\n Mexican Peso (MXN) continued to pressure the US Dollar (USD) late in the North American session after the latest Federal Reserve\u2019s (Fed) meeting minutes failed to underpin the Greenback (USD). Consequently, the USD\/MXN is exchanging hands at around 17.83, post losses of 0.50%.<\/p>\n Risk appetite<\/a> remains mixed. The latest minutes of the Federal Open Market Committee (FOMC) witnessed policymakers are set to maintain a restrictive policy for some time while acknowledging monetary policy risks had become two-sided, suggesting that inflation risks are tilted to the upside, while economic activity to the downside. All in all, most USD\/MXN traders brace for Thursday\u2019s economic calendar. Mexico would feature Industrial Production for August, which is expected to slow down. In the United States (US), the release of the Consumer Price Index<\/a> (CPI), which is expected to deflate compared to August\u2019s data, and unemployment claims could influence Fed<\/a> policymakers’ decisions.<\/p>\n Mexican Peso appreciated during the week as the USD\/MXN has dived more than 3%, below the 18.00 figure, with sellers targeting the 200-day Simple Moving Average (SMA) at 17.77. A breach of the latter will expose the 20-day SMA at 17.57 before challenging the low seen on September 30 at 17.34. If USD\/MXN sellers break that level, the pair will shift to a neutral-downward bias. On the flip side, buyers must reclaim the 18.00 figure for a bullish continuation.<\/p>\n <\/p>\n Monetary policy in the US is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability and foster full employment. Its primary tool to achieve these goals is by adjusting interest rates. The Federal Reserve (Fed) holds eight policy meetings a year, where the Federal Open Market Committee (FOMC) assesses economic conditions and makes monetary policy decisions. In extreme situations, the Federal Reserve may resort to a policy named Quantitative Easing (QE). QE is the process by which the Fed substantially increases the flow of credit in a stuck financial system. Quantitative tightening (QT) is the reverse process of QE, whereby the Federal Reserve stops buying bonds from financial institutions and does not reinvest the principal from the bonds it holds maturing, to purchase new bonds. It is usually positive for the value of the US Dollar.<\/p>\n<\/section>\n<\/div>\n <\/div>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":" Share: Mexican Peso is set to print substantial gains for four straight days, of more than 2.30%. Thursday\u2019s economic docket would feature Industrial Production in Mexico and inflation data in the United States. The USD\/MXN would achieve a daily close below 18.00 for the second straight day. Mexican Peso (MXN) continued to pressure the US […]<\/p>\n","protected":false},"author":2,"featured_media":47772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,276,2070,255,250,252,247,253,385,249,5212,871,256,254],"class_list":["post-172481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-currencies","tag-emergingmarkets","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-riskappetite","tag-safe-moon","tag-seo","tag-usdmxn","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=172481"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172481\/revisions"}],"predecessor-version":[{"id":172483,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/172481\/revisions\/172483"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/47772"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=172481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=172481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=172481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Daily Digest Market Movers: Mexican Peso stages a comeback, retreats from daily highs and targets 17.77<\/h2>\n
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Technical Analysis: Mexican Peso challenges last Wednesday\u2019s lows of 17.82<\/h2>\n
Fed FAQs<\/h2>\n
When prices are rising too quickly and inflation is above the Fed\u2019s 2% target, it raises interest rates, increasing borrowing costs throughout the economy. This results in a stronger US Dollar (USD) as it makes the US a more attractive place for international investors to park their money.
When inflation falls below 2% or the Unemployment Rate is too high, the Fed may lower interest rates to encourage borrowing, which weighs on the Greenback.<\/p>\n<\/section>\n
The FOMC is attended by twelve Fed officials \u2013 the seven members of the Board of Governors, the president of the Federal Reserve Bank of New York, and four of the remaining eleven regional Reserve Bank presidents, who serve one-year terms on a rotating basis.<\/p>\n<\/section>\n
It is a non-standard policy measure used during crises or when inflation is extremely low. It was the Fed\u2019s weapon of choice during the Great Financial Crisis in 2008. It involves the Fed printing more Dollars and using them to buy high grade bonds from financial institutions. QE usually weakens the US Dollar.<\/p>\n<\/section>\n