A mix of good growth and Fed cuts is tactically bearish for USD/MXN in the very short run – TDS
Source Fxstreet
Economists at TD Securities like the Mexican Peso (MXN) and expect the USD/MXN pair to move lower.
The USD is overbought and expensive
After the recent correction higher in the USD, it does not look as cheap or oversold. It now looks more balanced versus not just macro drivers but also our positioning indicators. This means that the USD's move higher should run out of steam soon, and risk-reward tilts towards fading the USD strength.
Tactically, we like USD/MXN lower, reflecting a powerful mix of disinflation and good US data, which is a sweet spot for MXN until we have to worry about elections and cuts by Banxico.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
The cryptocurrency market showed selective altcoin outperformance in 2025, with Bitcoin maintaining a high dominance, suggesting continued investor preference for BTC.
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Gold (XAU/USD) trades with a negative bias for the second consecutive day on Thursday, though it lacks follow-through selling and stalls the intraday slide near the $5,125 area.
Bitcoin (BTC) edges below $73,000 at press time on Monday, extending its decline under the prevailing downside pressure from three consecutive weeks of losses.
Related Instrument
