USD/MXN could head up and briefly trade above 18 – ING
|Peso’s September correction continues. Economists at ING analyze USD/MXN outlook.
Good Peso buying interest should USD/MXN trade over 18
High US interest rates are proving a headwind to emerging currencies worldwide – even to the mighty Mexican Peso. In addition, the Peso this month is facing the unwind of Banxico's FX intervention book – a front-loaded exercise that we felt could weigh on the MXN this month and perhaps into October, too.
With the Dollar set to stay strong for the next few weeks, USD/MXN could head up to the 200-Day Moving Average at 17.85 or even briefly trade above 18. However, we like the Peso multi-quarter and expect good Peso buying interest should USD/MXN trade over 18.
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.