USD/MXN: Another hike would be a surprise, but would not be guaranteed to be welcomed by the Peso – SocGen
|Economists at Société Générale analyze the USD/MXN outlook ahead of the Banxico meeting.
Break below 17.45 can lead USD/MXN towards next projections at 17.10/16.95
“Banxico is likely to pause monetary tightening today and leave the key rate at 11.25%. Another hike would be a surprise, but would not be guaranteed to be welcomed by the Peso if investors view the move through a negative lens for economic growth.”
“An initial bounce is not ruled out however 17.90 must be overcome for affirming a meaningful up move. Failure could mean persistence in down move.”
“Break below 17.45 can lead the pair towards next projections at 17.10/16.95 which is also the low formed in 2016.”
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