USD/MXN Forecast: Mexican President Sees Opportunity in Worsening US-China Relationship
As President of Mexico, Vicente Fox warned President Obama on his visit to Mexico, there will be more chaos in the world if there is no remedy for the growing international tensions caused by the unilateral acts of the United States and the endless war in Iraq. As President Bush Sr. said, “Hands off!” Separated, Chinese President Hu Jintao suggested that the leaders of Japan and South Korea are threatening to bomb the United States.
Recently, I discussed this issue with a trader who said, “Mexico has long had to face US sanctions, and it seems to me that while there is an improvement on the trade front, we are not doing well in terms USD / MXN market. If there is no trend reversal towards the end of the year, the USD / MXN currency will continue to depreciate. “
Despite the fact that President Bush Sr. has been away from the White House, he still has control over global affairs. He has been critical of China for its massive loans to third world countries, especially in Latin America, but today it has changed its stance and is now supporting Mexico’s trade with China.
President Bush said: “I see China as a tremendous economic power that has a historic opportunity in the Middle East and in Latin America.” As a result, the USD / MXN is showing signs of recovery.
However, while President Bush Sr. is warning China, and urging it to respect the rights of nations such as Iraq, Iran, Syria, North Korea, Venezuela, Cuba, Bolivia and Nicaragua, he is doing exactly the opposite in the deal. with China. Currently, the USD / MXN is appreciating in line with the dollar index.
Furthermore, it appears that President Bush is trying to unite the world against China, just as he supports Mexico with trade agreements that will reduce the USD / MXN to match the USD / JPY ratio. The world is also encouraged to use oil and other materials in China as the world market continues to suffer due to the problems of Bush Sr.
President Bush opposes China being allowed to control the region’s oil resources, and he is angered by the contamination and the spill of steel from China in the US, while at the same time doing business with China. At the same time, he will also meet with Chinese officials and the dispatch of senior government officials to those of the United Nations to present his case.
As China is no longer alone against the US dollar, it has now joined OPEC. A currency war is underway, with Mexico on the one hand and the United States on the other.
Bush Sr. is actually playing on both sides against the medium, while President Hu is running against China in the region. With all this turmoil in the international community, the USD / MXN continues to strengthen.
This article is for educational purposes only. It is not intended to provide investment or financial advice.
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