CADMXN (Canadian Dollar vs Mexican Peso). Exchange rate and online charts

The CAD/MXN currency pair is rather popular on Forex market. This pair is the cross rate against the U.S. dollar. There is no U.S. Dollar in this currency pair, however CAD/MXN is under its great influence. You can see that graphically: just combine two charts (CAD/USD and USD/MXN) in the same price chart, and you will get the approximate CAD/MXN chart.

The U.S. dollar affects both currencies profoundly. So for a better forecasting the future rate of this currency pair you need to consider the main indicators of the U.S. economy. There are such indicators as the interest rate, GDP, unemployment, new workplaces indicator and many others. Remember that the CAD/MXN currency pair can react in a different way to the U.S. economic changes.

Since Canada has been one of the largest world oil exporters, the world oil prices significantly influence the Canadian dollar. That is why the value of the Canadian dollar varies in direct proportion to the oil prices.

Mexico has the highest income per capita in Latin America that put this country among the most developed countries of that region. In the 80s to overcome the economic crisis, most of the Mexican state enterprises got privatized. Therefore, private sector comprises the bigger part of the Mexican economy. A great part of the former state-owned enterprises now belongs to the foreign companies.

Thanks to Mexican membership in the North American Free Trade Agreement (NAFTA), it has an active trade with United States and Canada, which, so to speak, generates considerable part of government revenue of Mexico.

Moreover, Mexico is the largest exporter of oil in Latin America, so the oil sector provides most of the country’s revenues. But the service sector stays the main source of Mexican income.

Despite of its huge oil and gas reserves, Mexican natural hydrocarbons are getting depleted. In order to avoid new economical problems, the Mexican government has to reduce the amount of extracted oil and natural gas. According to the experts, such restrictive policy can soon make Mexico to import oil from abroad to meet the needs of its economy. So you can see that the Mexican peso is dependent on the world oil prices. Furthermore, its exchange rate is closely dependent on the international ranking of Mexico, which is based on complex economic analysis and published by the most authoritative rating agencies.

Please note that the spread for cross currency pairs is usually higher than for more popular ones. So before you start dealing with the cross rates, study properly the broker’s conditions of trading with the specified trade instrument.