Mexican Peso to strengthen against a broadly soft USD over the medium-term – Wells Fargo

FXStreet Insights Team FXStreet

Economists at Wells Fargo believe the Mexican Peso will be able to absorb decoupling from the Fed and the currency will not come under undue pressure.

USD/MXN can move toward 18.00 by the middle of this year

“Prudent monetary policy decisions and effective forward guidance should support the Peso, while broad-based USD depreciation can help the Mexican currency strengthen against greenback during the decoupling.”

“Even with diverging paths for monetary policy between Banxico and the Fed, we believe the USD/MXN exchange rate can move toward 18.00 by the middle of this year and eventually trade with a 17 handle by the end of 2023 and into 2024.”

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FXStreet Insights Team

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