USD/MXN: Peso to hold gains for the time being – ING

FXStreet Insights Team FXStreet

The Mexican Peso remains one of the top FX performers of the year and is only surpassed by the Colombian Peso. Economists at ING analyze MXN outlook.

Political calendar drifts into view

Investors like the high carry in Mexico, the well-run economy and the exposure to surprisingly strong US growth so far this year. Indeed, worker remittances back to Mexico hit a record $5.7bn high in May.

Banxico is promising an extended period of high rates (currently 11.25% policy rate), but will probably cut with the Fed in the first quarter of 2024.

Politics looks the only shadow over the strong peso story, with Mexican elections next June and US elections next November. For the time being, however, expect MXN to hold gains.

USD/MXN – 1M 17 3M 17 6M 17 12M 16.50

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.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.