USD/MXN will be trading comfortably below 17.00 into 2024 – ING
|Banxico will announce its rate decision later today. Economists at ING analyze Mexican Peso’s outlook ahead of the meeting.
Banxico should remain hawkish
Survey respondents unanimously expect unchanged rates at 11.25%. Equally, we think Banxico will be more than happy to keep the 600 bps policy rate premium over Fed rates – a position that has kept USD/MXN relatively stable, reduced implied volatility and contributed to the Peso's attractiveness for carry trade strategies.
Loose fiscal and tight monetary policy is normally a very positive environment for a currency and this is why we think USD/MXN will be trading comfortably below 17.00 into 2024.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.