USD/MXN: Opportunity to target 16.40 in six to nine months – SocGen
Source Fxstreet
The Mexican Peso (MXN) is down about 1.3% vs. the US Dollar (USD) – spot basis and flat year-to-date on total basis – so far in 2024. Strategists at Société Générale analyze MXN outlook.
Banxico to launch easing cycle in March
Our EM strategists remain optimistic on the Peso and continue to favour buying MXN dips.
We expect the central bank to implement gradual easing, starting with a 25 bps cut in March and then a cumulative -250 bps to 8.45% by end-2024 against implied pricing of around 9.50%.
We see an opportunity target 16.40 in six to nine months thanks to structural domestic tailwinds of nearshoring and high remittances, and high carry-to-vol. The caveat is US tariffs and an overshoot of US bond yields.
Disclaimer: For information purposes only. Past performance is not indicative of future results.
Recommended Articles
After a turbulent 2025, what lies ahead for commodities, forex, and cryptocurrency markets in 2026?
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.
Solana Future: From high-speed experiment to corporate treasury playbook for the next SOL cycleSolana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
Solana’s Proof of History architecture is colliding with rising institutional treasury adoption and governance scrutiny, with SOL’s next cycle hinging on validator distribution, stability, and regulated capital access.
Gold (XAU/USD) hits a nearly four-week high during the Asian session on Wednesday, though it lacks follow-through buying and currently trades just below the $4,850 level, nearly unchanged for the day.
Related Instrument
