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I am just curious as to what caused the peso drop right now within just a few days. I posted it for other Canadians who may wish to  take advantage and transfer some $'s from their Canadian bank to their Mexican  bank. XE is what I follow for that purpose and will check again Monday and if it's still around 15 will write a cheque for deposit.

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8 hours ago, happyjillin said:

Hits 15 MP today. What's going on?

The pesos fell-Trump

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14 minutes ago, cedros said:

The pesos fell-Trump

Lose the politics cedro...

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2 hours ago, happyjillin said:

I am just curious as to what caused the peso drop right now within just a few days. I posted it for other Canadians who may wish to  take advantage and transfer some $'s from their Canadian bank to their Mexican  bank. XE is what I follow for that purpose and will check again Monday and if it's still around 15 will write a cheque for deposit.


It's true that the MXN peso got weaker versus the CAD,  but it's because the MXN peso has gotten weaker vs the USD (hitting almost $20:1),   while the CAD has remained steady vs the USD..

The Euro EU has sagged to $1.11 USD ... and the Pound has slid to $1.22 USD ... and US 2yr T-Bill rates have gradually crashed from 3% earlier this past year... down to a staggeringly low 1.5% this week => a HUGE indicator of looming recession.

Why? ... The perception is that the world is sliding into recession, due to the trade wars, as even Germany;s (normally robust) economy has slid to recession numbers  ...  forcing the German banks to start to raise interest rates for the first time in 10 years .... and the US Fed just raised interest rates the first time in 10 years ...  and ...  The Chinese are sliding so bad, they just had to default on their first big $$ payment on their massive "Belt and Road" system (stranding Kazakhstan's plans) ...

Why? .. The world's best indicaior of an impending US recession just solidly went NEGATIVE - as the  US Treasury Bond "Yield Curve" flipped, as BIG MONEY$$ people around the globe are rushing to buy 1 yr & 2 yr US Treasury notes ... and scorning the 10 yr. Treasury notes - because they now see SERIOUS WEAKNESS on the 10 yr scale for the US economy. ... PLUS ... It was announced this week that US manufacturing output has been sliding-falling  for the past FULL 4 Quarters ... as the top investors (smart money and big money)  around the world are convinced that the USA economy is stumbling, and "very likely" to fall into recession ...  So, huge international money is rushing to the perceived safety of short term US Treasury notes...   DRIVING THEM DOWN by 50% ...where they were up at 3% ... They are now down at a SHOCKING 1.5% ...

So ...  When massive money is buying short term US T-bills at a pitiful 1.5% return ... it says that even the BIGGEST $$ PLAYERS are very very worried .... as they cash out of other investments - and accept crummy 1.5% returns from the US govt - because they think ...
"At least the US Govt will pay,  when other things crash."

FINALLY
The last big factor in the last 2 weeks of a sliding-weakening MXN Peso ... is that the TRADE WARS just heated up, instead of being negotiated.  Both China & USA announcing BIG NEW tariffs these coming months - expanding the economic trade wars. ... And Mexico is caught in the middle... 



NOTE:  NONE of this is political ... It's all just straight-up economic news ... simple reporting of public financial news ... as described by Bloomberg.

Why does all this bad economic news for the USA   mean   a weaker MXN Peso?
2 factors:
1. Mexico is considered the tail of the very big US dog.   ... Mexico's economic fate is WAGGED by the massive US economy., because USA & Mexico are the world's 2-biggest & best trading partners.    When USA does well, then Mexico thrives ... When USA slides,  Mexico is drug down even ~worse~ ... being wagged by the USA sliding down.  (especially with this week's  USA's  & China's BIG expansions of the nasty trade war )

and

2.  The Mexican peso is unique ...  The MXN Peso is the ONLY "Developing Nation" currency in the world that's traded world-wide ...  traded in large amounts ...  and traded 7 days a week. ... That means (too often) BIG MONEY speculators use the MXN peso as the SURROGATE for ALL "Developing Nation" economies.

When the biggest players: USA, China, Japan, SK, Gr. Britain AND the Europe all start sliding down at the same time - all threatening to go into simultaneous recession ... then the Developing Nations economies (Argentina, Brazil, India, Russia and all of Africa)  generally GET TRASHED. ... 

Because there's no decent way to trade in the other Developing Nation's currencies:  (Indian Rupees, Argentine Sols, Russian Rubles or Brazilian Reales) ... INSTEAD ... the Big Money speculators use the MXN Peso as their surrogate for betting  that THE WHOLE DEVELOPING WORLD is going to suffer economically ...

This means that ... Yes, Mexico's economy is suffering .... but NO WHERE NEAR as much as the currency traders (driven by Big Money speculators) are bashing the MXN Peso.

So ... It's been a nasty 2 weeks of news for the worlds economies ... and Mexico is getting punished as the "fellow sharing a bed with the elephant"...

Does that all make sense?


**This is NOT a political post ... It''s the news reports of economic data & what the Wall Street Journal & Bloomberg economic experts have been saying the past months, intensifying with the especially bad economic news out of the USA & Germany (& China) last week & this week.

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Bank rates, Bank rates 🤔..where would you park your  spare  cash, everyone is a basket case, so you choose the lesser of the  know  evils..? For me the green back

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1 hour ago, pappysmarket said:

Lose the politics cedro...

It isn't political-just a fact. The US dollar got stronger because of comments Trump made so the pesos is weaker.

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55 minutes ago, cedros said:

It isn't political-just a fact. The US dollar got stronger because of comments Trump made so the pesos is weaker.

With respect  Pres Trump did not make the Peso weaker, with the uncertainty in the MX market and its decision to lower it's bank rate, investment in  MX is less attractive 

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The US economy is stronger than it has been in lots of years, it is the other countries who have been and are having trouble with their economies. Lots of people are praying for a recession and fabricating all kinds of statistics and "warning signs" to encourage people to get scared. They will try every trick they can imagine to gain power and control. Don't become a sheep. Snowyco is trying to add to those scare tactics.

 

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3 hours ago, snowyco said:


It's true that the MXN peso got weaker versus the CAD,  but it's because the MXN peso has gotten weaker vs the USD (hitting almost $20:1),   while the CAD has remained steady vs the USD..

The Euro EU has sagged to $1.11 USD ... and the Pound has slid to $1.22 USD ... and US 2yr T-Bill rates have gradually crashed from 3% earlier this past year... down to a staggeringly low 1.5% this week => a HUGE indicator of looming recession.

Why? ... The perception is that the world is sliding into recession, due to the trade wars, as even Germany;s (normally robust) economy has slid to recession numbers  ...  forcing the German banks to start to raise interest rates for the first time in 10 years .... and the US Fed just raised interest rates the first time in 10 years ...  and ...  The Chinese are sliding so bad, they just had to default on their first big $$ payment on their massive "Belt and Road" system (stranding Kazakhstan's plans) ...

Why? .. The world's best indicaior of an impending US recession just solidly went NEGATIVE - as the  US Treasury Bond "Yield Curve" flipped, as BIG MONEY$$ people around the globe are rushing to buy 1 yr & 2 yr US Treasury notes ... and scorning the 10 yr. Treasury notes - because they now see SERIOUS WEAKNESS on the 10 yr scale for the US economy. ... PLUS ... It was announced this week that US manufacturing output has been sliding-falling  for the past FULL 4 Quarters ... as the top investors (smart money and big money)  around the world are convinced that the USA economy is stumbling, and "very likely" to fall into recession ...  So, huge international money is rushing to the perceived safety of short term US Treasury notes...   DRIVING THEM DOWN by 50% ...where they were up at 3% ... They are now down at a SHOCKING 1.5% ...

So ...  When massive money is buying short term US T-bills at a pitiful 1.5% return ... it says that even the BIGGEST $$ PLAYERS are very very worried .... as they cash out of other investments - and accept crummy 1.5% returns from the US govt - because they think ...
"At least the US Govt will pay,  when other things crash."

FINALLY
The last big factor in the last 2 weeks of a sliding-weakening MXN Peso ... is that the TRADE WARS just heated up, instead of being negotiated.  Both China & USA announcing BIG NEW tariffs these coming months - expanding the economic trade wars. ... And Mexico is caught in the middle... 



NOTE:  NONE of this is political ... It's all just straight-up economic news ... simple reporting of public financial news ... as described by Bloomberg.

Why does all this bad economic news for the USA   mean   a weaker MXN Peso?
2 factors:
1. Mexico is considered the tail of the very big US dog.   ... Mexico's economic fate is WAGGED by the massive US economy., because USA & Mexico are the world's 2-biggest & best trading partners.    When USA does well, then Mexico thrives ... When USA slides,  Mexico is drug down even ~worse~ ... being wagged by the USA sliding down.  (especially with this week's  USA's  & China's BIG expansions of the nasty trade war )

and

2.  The Mexican peso is unique ...  The MXN Peso is the ONLY "Developing Nation" currency in the world that's traded world-wide ...  traded in large amounts ...  and traded 7 days a week. ... That means (too often) BIG MONEY speculators use the MXN peso as the SURROGATE for ALL "Developing Nation" economies.

When the biggest players: USA, China, Japan, SK, Gr. Britain AND the Europe all start sliding down at the same time - all threatening to go into simultaneous recession ... then the Developing Nations economies (Argentina, Brazil, India, Russia and all of Africa)  generally GET TRASHED. ... 

Because there's no decent way to trade in the other Developing Nation's currencies:  (Indian Rupees, Argentine Sols, Russian Rubles or Brazilian Reales) ... INSTEAD ... the Big Money speculators use the MXN Peso as their surrogate for betting  that THE WHOLE DEVELOPING WORLD is going to suffer economically ...

This means that ... Yes, Mexico's economy is suffering .... but NO WHERE NEAR as much as the currency traders (driven by Big Money speculators) are bashing the MXN Peso.

So ... It's been a nasty 2 weeks of news for the worlds economies ... and Mexico is getting punished as the "fellow sharing a bed with the elephant"...

Does that all make sense?


**This is NOT a political post ... It''s the news reports of economic data & what the Wall Street Journal & Bloomberg economic experts have been saying the past months, intensifying with the especially bad economic news out of the USA & Germany (& China) last week & this week.

Yes it makes sense. Good post

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3 hours ago, snowyco said:


It's true that the MXN peso got weaker versus the CAD,  but it's because the MXN peso has gotten weaker vs the USD (hitting almost $20:1),   while the CAD has remained steady vs the USD..

The Euro EU has sagged to $1.11 USD ... and the Pound has slid to $1.22 USD ... and US 2yr T-Bill rates have gradually crashed from 3% earlier this past year... down to a staggeringly low 1.5% this week => a HUGE indicator of looming recession.

Why? ... The perception is that the world is sliding into recession, due to the trade wars, as even Germany;s (normally robust) economy has slid to recession numbers  ...  forcing the German banks to start to raise interest rates for the first time in 10 years .... and the US Fed just raised interest rates the first time in 10 years ...  and ...  The Chinese are sliding so bad, they just had to default on their first big $$ payment on their massive "Belt and Road" system (stranding Kazakhstan's plans) ...

Why? .. The world's best indicaior of an impending US recession just solidly went NEGATIVE - as the  US Treasury Bond "Yield Curve" flipped, as BIG MONEY$$ people around the globe are rushing to buy 1 yr & 2 yr US Treasury notes ... and scorning the 10 yr. Treasury notes - because they now see SERIOUS WEAKNESS on the 10 yr scale for the US economy. ... PLUS ... It was announced this week that US manufacturing output has been sliding-falling  for the past FULL 4 Quarters ... as the top investors (smart money and big money)  around the world are convinced that the USA economy is stumbling, and "very likely" to fall into recession ...  So, huge international money is rushing to the perceived safety of short term US Treasury notes...   DRIVING THEM DOWN by 50% ...where they were up at 3% ... They are now down at a SHOCKING 1.5% ...

So ...  When massive money is buying short term US T-bills at a pitiful 1.5% return ... it says that even the BIGGEST $$ PLAYERS are very very worried .... as they cash out of other investments - and accept crummy 1.5% returns from the US govt - because they think ...
"At least the US Govt will pay,  when other things crash."

FINALLY
The last big factor in the last 2 weeks of a sliding-weakening MXN Peso ... is that the TRADE WARS just heated up, instead of being negotiated.  Both China & USA announcing BIG NEW tariffs these coming months - expanding the economic trade wars. ... And Mexico is caught in the middle... 



NOTE:  NONE of this is political ... It's all just straight-up economic news ... simple reporting of public financial news ... as described by Bloomberg.

Why does all this bad economic news for the USA   mean   a weaker MXN Peso?
2 factors:
1. Mexico is considered the tail of the very big US dog.   ... Mexico's economic fate is WAGGED by the massive US economy., because USA & Mexico are the world's 2-biggest & best trading partners.    When USA does well, then Mexico thrives ... When USA slides,  Mexico is drug down even ~worse~ ... being wagged by the USA sliding down.  (especially with this week's  USA's  & China's BIG expansions of the nasty trade war )

and

2.  The Mexican peso is unique ...  The MXN Peso is the ONLY "Developing Nation" currency in the world that's traded world-wide ...  traded in large amounts ...  and traded 7 days a week. ... That means (too often) BIG MONEY speculators use the MXN peso as the SURROGATE for ALL "Developing Nation" economies.

When the biggest players: USA, China, Japan, SK, Gr. Britain AND the Europe all start sliding down at the same time - all threatening to go into simultaneous recession ... then the Developing Nations economies (Argentina, Brazil, India, Russia and all of Africa)  generally GET TRASHED. ... 

Because there's no decent way to trade in the other Developing Nation's currencies:  (Indian Rupees, Argentine Sols, Russian Rubles or Brazilian Reales) ... INSTEAD ... the Big Money speculators use the MXN Peso as their surrogate for betting  that THE WHOLE DEVELOPING WORLD is going to suffer economically ...

This means that ... Yes, Mexico's economy is suffering .... but NO WHERE NEAR as much as the currency traders (driven by Big Money speculators) are bashing the MXN Peso.

So ... It's been a nasty 2 weeks of news for the worlds economies ... and Mexico is getting punished as the "fellow sharing a bed with the elephant"...

Does that all make sense?


**This is NOT a political post ... It''s the news reports of economic data & what the Wall Street Journal & Bloomberg economic experts have been saying the past months, intensifying with the especially bad economic news out of the USA & Germany (& China) last week & this week.

Me too.

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1 hour ago, lakeside7 said:

With respect  Pres Trump did not make the Peso weaker, with the uncertainty in the MX market and its decision to lower it's bank rate, investment in  MX is less attractive 

Economists say Trump's tactics are pushing the world towards recession. This uncertainty has affected the peso.

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14 hours ago, snowyco said:


It's true that the MXN peso got weaker versus the CAD,  but it's because the MXN peso has gotten weaker vs the USD (hitting almost $20:1),   while the CAD has remained steady vs the USD..

The Euro EU has sagged to $1.11 USD ... and the Pound has slid to $1.22 USD ... and US 2yr T-Bill rates have gradually crashed from 3% earlier this past year... down to a staggeringly low 1.5% this week => a HUGE indicator of looming recession.

Why? ... The perception is that the world is sliding into recession, due to the trade wars, as even Germany;s (normally robust) economy has slid to recession numbers  ...  forcing the German banks to start to raise interest rates for the first time in 10 years .... and the US Fed just raised interest rates the first time in 10 years ...  and ...  The Chinese are sliding so bad, they just had to default on their first big $$ payment on their massive "Belt and Road" system (stranding Kazakhstan's plans) ...

Why? .. The world's best indicaior of an impending US recession just solidly went NEGATIVE - as the  US Treasury Bond "Yield Curve" flipped, as BIG MONEY$$ people around the globe are rushing to buy 1 yr & 2 yr US Treasury notes ... and scorning the 10 yr. Treasury notes - because they now see SERIOUS WEAKNESS on the 10 yr scale for the US economy. ... PLUS ... It was announced this week that US manufacturing output has been sliding-falling  for the past FULL 4 Quarters ... as the top investors (smart money and big money)  around the world are convinced that the USA economy is stumbling, and "very likely" to fall into recession ...  So, huge international money is rushing to the perceived safety of short term US Treasury notes...   DRIVING THEM DOWN by 50% ...where they were up at 3% ... They are now down at a SHOCKING 1.5% ...

So ...  When massive money is buying short term US T-bills at a pitiful 1.5% return ... it says that even the BIGGEST $$ PLAYERS are very very worried .... as they cash out of other investments - and accept crummy 1.5% returns from the US govt - because they think ...
"At least the US Govt will pay,  when other things crash."

FINALLY
The last big factor in the last 2 weeks of a sliding-weakening MXN Peso ... is that the TRADE WARS just heated up, instead of being negotiated.  Both China & USA announcing BIG NEW tariffs these coming months - expanding the economic trade wars. ... And Mexico is caught in the middle... 



NOTE:  NONE of this is political ... It's all just straight-up economic news ... simple reporting of public financial news ... as described by Bloomberg.

Why does all this bad economic news for the USA   mean   a weaker MXN Peso?
2 factors:
1. Mexico is considered the tail of the very big US dog.   ... Mexico's economic fate is WAGGED by the massive US economy., because USA & Mexico are the world's 2-biggest & best trading partners.    When USA does well, then Mexico thrives ... When USA slides,  Mexico is drug down even ~worse~ ... being wagged by the USA sliding down.  (especially with this week's  USA's  & China's BIG expansions of the nasty trade war )

and

2.  The Mexican peso is unique ...  The MXN Peso is the ONLY "Developing Nation" currency in the world that's traded world-wide ...  traded in large amounts ...  and traded 7 days a week. ... That means (too often) BIG MONEY speculators use the MXN peso as the SURROGATE for ALL "Developing Nation" economies.

When the biggest players: USA, China, Japan, SK, Gr. Britain AND the Europe all start sliding down at the same time - all threatening to go into simultaneous recession ... then the Developing Nations economies (Argentina, Brazil, India, Russia and all of Africa)  generally GET TRASHED. ... 

Because there's no decent way to trade in the other Developing Nation's currencies:  (Indian Rupees, Argentine Sols, Russian Rubles or Brazilian Reales) ... INSTEAD ... the Big Money speculators use the MXN Peso as their surrogate for betting  that THE WHOLE DEVELOPING WORLD is going to suffer economically ...

This means that ... Yes, Mexico's economy is suffering .... but NO WHERE NEAR as much as the currency traders (driven by Big Money speculators) are bashing the MXN Peso.

So ... It's been a nasty 2 weeks of news for the worlds economies ... and Mexico is getting punished as the "fellow sharing a bed with the elephant"...

Does that all make sense?


**This is NOT a political post ... It''s the news reports of economic data & what the Wall Street Journal & Bloomberg economic experts have been saying the past months, intensifying with the especially bad economic news out of the USA & Germany (& China) last week & this week.

If only it was as simple as you paint it, we could all be millionaires just jumping on this news as gospel. Just sell short and watch the money roll in. What is the extent of your own short position?

 

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10 hours ago, cedros said:

Economists say Trump's tactics are pushing the world towards recession. This uncertainty has affected the peso.

It took you awhile, but you figured out how to post something without making it blatantly political. Progress... 

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13 hours ago, lakeside7 said:

Bank rates, Bank rates 🤔..where would you park your  spare  cash, everyone is a basket case, so you choose the lesser of the  know  evils..? For me the green back

Note that my OP is directed at Canadians and we don't use your greenback here in Mexico nor in Canada.

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3 hours ago, happyjillin said:

Note that my OP is directed at Canadians and we don't use your greenback here in Mexico nor in Canada.

You can use a US account in Canadian Banks. 

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Or possibly "none of the above". Canada did something unusual last week, like increasing their currency reserve. Something at the Bank of Canada level, and investors responded. Many are now hedging with the Canadian dollar, especially since the leader of the U.S. has announced that he wants a lower dollar to help with exports. Using his emergency powers to bypass Congress and introduce a currency trading tax.

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6 hours ago, pappysmarket said:

If only it was as simple as you paint it, we could all be millionaires just jumping on this news as gospel. Just sell short and watch the money roll in. What is the extent of your own short position?

 


Not shorting anything... 

What is the extent of your short positions?

What is the extent of your long positions?

What's the ratio of your bond holdings versus equities (stocks)?

 

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I'm not the one running around yelling "The sky is falling!" I'm very pleased with the current economic conditions. Remind me of Chicken Little.

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11 minutes ago, pappysmarket said:

I'm not the one running around yelling "The sky is falling!" I'm very pleased with the current economic conditions. Remind me of Chicken Little.

What am I missing? 

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1 minute ago, Alpha1 said:

What am I missing? 

Nothing, move along, nothing to see here.

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3 hours ago, Alpha1 said:

You can use a US account in Canadian Banks. 

I know that but have no interest in doing so. I made this post as a heads up for FELLOW CANADIANS that it might be wise to top up your Mexican bank account right now. Nothing more,nothing less. I don't travel to the US and if I buy something from there,I use my Scotiabank Visa card. I make a simple post and a whole bunch of you go running off on all sorts of tangents that are unrelated.

 

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It's maintaining course.I can hardly wait until Monday to dump some Canbucks into my Mexican bank account. Anyhow the bafflegarb is overflowing on this and quite frankly none of us really knows why this has happened in the last four days or so. Flushing the toilet might help.

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For what it's worth, USD/MXN just crossed 20:1 as trading begins in the new week.

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