Credit: $1.6 billion plant in Mexico shelved. Will invest 700 million in Michigan.
The USDMXN has surged higher on the back of news that Ford will cancel building a $1.6 billion plant in Mexico and instead invest 700 million in a Michigan plant that will add 700 workers.
The USDMXN has pushed to the highest level since the post election day surge (since Nov. 14). The high post election rocketed to 21.3776. The December high reached 20.8657. Theis is now risk for longs. The session high today reached 20.90077 so far. Another level to eye as support on the downside now is the high close. THat occurred back on November 11th and came in at 20.8222. A close above that level today will also be more bullish for the pair.
PS on the correction from the Trump election rally, the price stalled near the 38.2% retracement level at the 20.14287 level. The pair has been pushing back higher since the second successful test in December.
Trump effect is kicking in. Over the weekend, Trump also tweeted about GM and how they build the Chevy Volt in Mexico and export it back to the US with no tax. The days are ticking to inauguration day and companies are running a bit more scared (and NAFTA is also on shaky grounds).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
