USD/MXN: Peso will continue to trade at strong levels for the time being – Commerzbank
|Economists at Commerzbank discuss USD/MXN outlook after yesterday’s Mexican inflation figures.
End of rate hike cycle in Mexico not in doubt
Mexican inflation data came out yesterday as expected, confirming a declining inflation rate but still high core inflation dynamics. However, unlike for the Fed, the market is convinced that Banxico, Mexico's central bank, has ended its rate hike cycle.
We maintain our view that the Mexican Peso will continue to trade at strong levels for the time being.
The next directional impulse for the USD/MXN is more likely to come from the US in the form of the Fed's interest rate decision next week.
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.