USD/MXN could break below 18.00 as Banxico hikes and oil stays supported – ING
|Economists at ING think the Mexican Peso’s bullish momentum may have further to run.
25 bps hike by Banxico, and maybe a break below 18.00
“Today, Banxico will announce monetary policy and we expect a 25 bps rate hike to 11.25%. “Market pricing suggests investors have already scaled back expectations for additional Banxico tightening beyond today’s hike. If anything, leaving the door open for more tightening if needed as the Bank reiterates its resolution to fight inflation might see some positive impact on the MXN.”
“We think MXN remains attractive in an environment where markets favour currencies with high carry and positive exposure to rebounding crude prices.”
“A break below 18.00 in USD/MXN may be on the cards soon, potentially today on a hawkish surprise by Banxico.”
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.