USD/MXN: Peso requires continuation of a hawkish stance from Banxico to maintain stability – TDS

FXStreet Insights Team FXStreet

On Thursday, November 11 at 19:00 GMT the Bank of Mexico will have its monetary policy meeting. In the view of economists at TDS, Banxico will hike rates by 25bps to 5%, which should support the peso.

Volatile short-term US yields remain a challenge for the peso

“We expect Banxico to hike rates by 25bps, though inflation trends continue to suggest the risk of a more aggressive rate move.”

“MXN's sensitivity to US yields is adding a challenge to the peso, as US short-term yields remain volatile and face upside pressure.”

“We expect that the market would be substantially helped by a larger than 25bp rate hike, or at the least a unanimous decision on the rate hike.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

AUD/USD consolidates above 0.6950 amid risk aversion

AUD/USD consolidates in the Asian session on Thursday, trading just above 0.6950 as traders assess developments in the Middle East crisis. The Pentagon reportedly ordered readiness for potential strikes against Iran. This keeps the geopolitical risk premium in play, which, along with hawkish FOMC Minutes and elevated US bond yields, will likely keep the US Dollar underpinned at the expense of the pair.

USD/JPY slips below 158.00 as USD retreats

USD/JPY returns to the red below 158.00 in the Asian session on Thursday amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, the US Dollar eases from near an 18-month high on profit taking, ignoring Wednesday's hawkish FOMC Minutes and the risk of a further escalation of tensions in the Middle East, adding to the pair's pullback.

Gold rebounds from two-month lows; will it sustain?

Gold is bouncing back toward $4,150 early Thursday after defending $4,100 on Wednesday. US Dollar retreats on profit-taking, despite high Treasury yields and hawkish Fed Minutes. Risks remain skewed to the downside for Gold while RSI stays bearish.

Ripple and Stellar test key support amid rising downside risks

Ripple (XRP) and Stellar (XLM) remain under pressure and extend their corrections on Thursday as weakening derivatives metrics and broader macroeconomic headwinds weigh on sentiment. XRP and XLM approach a key support zone after three consecutive days of losses so far this week.

The UK 30-year gilt just hit a 1998 high. Is that good or bad for the British Pound?

The yield on the UK's 30-year government bond, or gilt, went through 6% on October 1 for the first time since early 1998, and on Monday the Pound was at its strongest against the Euro since June 2025. The gilt market's 28-year high is mostly someone else's. Since early May, the 30-year gilt yield has risen about 0.15 of a percentage point and the US 30-year about 0.7.