Wednesday saw the Mexican peso slip to the world's reserve currency while worries abounded for the economy of Germany, the euro zone's biggest market, according to Dow Jones Newswires.
Stocks also lost value alongside Latin America's most traded currency amid data stating Germany's economy contracted during the fourth quarter of last year. This past November saw Spanish industrial output drop 7 percent when compared with the same month during the year prior, causing additional chills for euro zone economic prospects.
Analyst Juan Carlos Alderete with Banorte-Ixe told Dow Jones Newswires that investors continue to very cautiously eye Europe and the likelihood of a recession in the region is climbing.
November 2011 also saw weaker-than-forecast industrial production in Mexico, calling attention to the state of the global economy. Mexico's monetary unit has lost about 15 percent of its value to the greenback since August 2011, which is attributable to damages caused by the sovereign debt crisis.
Despite the peso's poor performance on Wednesday, the monetary unit gained the most in one week during the prior trading session, according to Bloomberg. European leaders committing to redouble efforts to challenge the debt crisis encouraged the performance of the peso on Tuesday.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
