The Mexican Peso (MXN) is the only Latin currency to be up against the Dollar on a total return basis in 2024. Economists at ING analyze USD/MXN outlook.
The market is looking for signals that Banxico is ready to pull the trigger
On Thursday, we have a rate meeting in Mexico. With trading partners to the south slashing interest rates, the market is looking for signals that Banxico is ready to pull the trigger. Even if it sent some signals to that effect – e.g. one member of the Governing Board voted for a cut – we doubt the Peso would have to sell off too hard.
Investors are quite rightly at this very early stage, ignoring the threat of a new Trump administration, and are happy to pick up an 11% yield on a currency powered by loose fiscal and tight monetary policy.
Source: https://www.fxstreet.com/news/usd-mxn-suggestions-of-an-early-banxico-cut-unlikely-to-damage-the-mexican-peso-ing-202402051522