USD/MXN: On track to return below 17.00 for the first time since early September – SocGen
|The Mexican Peso has rallied 5.9% vs. the US Dollar this month. Economists at Société Générale analyze USD/MXN outlook.
17.70 is near term hurdle
The MXN is on track to strengthen to 17.00/USD for the first time since early September amid broad USD weakness.
The pair is expected to drift towards next potential supports at 17.00 and July/August lows near 16.60.
Confluence of 50-DMA and 200-DMA near 17.70 is near term hurdle.
The Banxico will release its quarterly inflation report on Wednesday. The forecast should be in line with those of November: average inflation steadily slowing to 4.4% in 4Q23 and 3.4% in 2024, with the average core slowing to 5.3% and 3.3%, respectively.
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