Societe Generale report suggests that the seasonal trends do not support a stronger Peso in April against the USD/MXN.

Societe Generale report suggests that the seasonal trends do not support a stronger Peso in April against the USD/MXN.

Time Stamp: April 4, 2023 10:00 AM
Source Node: 2579239

A recent report by Societe Generale has suggested that the seasonal trends do not support a stronger Peso in April against the USD/MXN. This report has caused some concern among investors who were hoping for a stronger Peso in the coming month.

The report suggests that the Peso has historically weakened against the USD/MXN in the month of April. This is due to a number of factors, including seasonal factors such as tax payments and lower oil prices. Additionally, the report notes that the Peso has been under pressure due to political uncertainty in Mexico, as well as concerns about the global economic outlook.

While this news may be disappointing for investors who were hoping for a stronger Peso, it is important to remember that the foreign exchange market is complex and unpredictable. There are many factors that can influence currency exchange rates, and seasonal trends are just one of them.

It is also worth noting that while the Peso may not be expected to strengthen against the USD/MXN in April, this does not mean that it will necessarily weaken significantly. The exchange rate may remain relatively stable, or even experience some minor fluctuations.

Investors who are interested in trading the USD/MXN should keep a close eye on economic and political developments in Mexico, as well as global economic trends. These factors can have a significant impact on currency exchange rates, and can help investors make informed decisions about when to buy or sell.

Overall, while the Societe Generale report may suggest that the seasonal trends do not support a stronger Peso in April, it is important to remember that there are many factors that can influence currency exchange rates. Investors should stay informed and keep an eye on market developments in order to make informed trading decisions.