Banxico Preview: Unlikely to signal imminent rate hikes, USD/MXN to hover between 19.80-20.60 – Rabobank


Banxico will announce its latest rate decision on Thursday, June 24 and both analysts and traders are united in their expectation of no change in the 4% policy rate. Rabobank’s USD/MXN forecast is unchanged at 20.50 during Q3 and the Dutch Bank maintains its trading range of 19.50 to 21.0 with a bias towards the 19.80 to 20.60 region.

Forecast for USD/MXN remains unchanged

“Banxico will announce its latest rate decision on Thursday, June 24 and we expect the Bank to leave rates on hold at 4.00%. This is expected by analysts and traders alike. We expect a unanimous decision.”

“The last meeting saw a more hawkish shift as Banxico switched from suggesting that the balance of risks to inflation is uncertain, to stating that the balance of risks is now skewed to the upside. That said, the tone tempered any expectations of near term rate hikes. We maintain the view that Banxico will not raise rates this year but will wait until 2022.”

“We have long been highlighting a trading range of 19.50 to 21.0 with a bias towards the 19.80 to 20.60 region and our point forecast sat at 20.5 for today and the next two months. Although the risk is now skewed to the upper end of the range, we still trading will persist within these boundaries in Q3.”

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD clings to 1.18 as markets digest US data

EUR/USD is battling the 1.18 level after US Retail Sales beat estimates but came on top of a downward revision. Consumer sentiment missed expectations but inflation expectations advanced. Covid headlines are also eyed.

EUR/USD News

GBP/USD pressured around 1.38 after mixed US data

GBP/USD is trading around 1.38 down on the day after US Retail Sales beat estimates but consumer sentiment missed expectations. Hawkish BOE comments support sterling ahead of Britain's reopening on Monday.

GBP/USD News

XAU/USD flirts with daily lows, just above $1,820 level

Gold remained on the defensive through the first half of the European session and was last seen hovering near the lower end of its daily trading range, just above the $1,820 level.

Gold News

Bitcoin miners evolve and adapt while bulls gear up for $38,000

Bitcoin price has been tightening as it consolidates in a slim range. The recent price action seems to have developed into a bullish pattern that hints at a potential impulsive move if BTC manages to slice through a critical resistance level. 

Read more

GME Stock News: Gamestop trades lower after Netflix emerges as a new rival

NYSE:GME dipped by 0.48% on Thursday, as the broader markets continued to show volatility. Netflix announces its entry into the videogame market. AMC outpaces the market as the meme stock bucks its recent trend.

Read more

Forex MAJORS

Cryptocurrencies

Signatures