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
The scaling of tokenized gold will cause Bitcoin to lose its status as digital gold, but this is not necessarily a bad thing.On Thursday (January 29), driven by a surge in gold ( XAUUSD)
Bitcoin's potential short liquidations highlight a $93,500 target, driven by over $4.5 billion in at-risk positions.
The U.S. dollar is facing its most aggressive sell-off in nearly four years, with the Bloomberg Dollar Spot Index dropping Tuesday to its lowest level since March 2022.Despite this, Presi
Ethereum Is Already 20% Prepared for the Quantum Era, Says InterviewEthereum's drive for post-quantum security is advancing with strategic upgrades in execution, consensus, and data layers. The initiative is backed by the Ethereum Foundation's dedicated team. Ethereum aims to safeguard against future quantum threats well before they materialize.
Ethereum's drive for post-quantum security is advancing with strategic upgrades in execution, consensus, and data layers. The initiative is backed by the Ethereum Foundation's dedicated team. Ethereum aims to safeguard against future quantum threats well before they materialize.
Top 3 Price Outlook: BTC Holds Above $89,000 as ETH Tests Resistance and XRP Stabilizes Near $1.90BTC trades near $89,300 after reclaiming $87,787 support and eyes $90,000, while ETH tests $3,017 and the $3,101 50-day EMA and XRP rebounds to $1.90 from $1.83 with $1.96 resistance and $1.77 downside risk.
BTC trades near $89,300 after reclaiming $87,787 support and eyes $90,000, while ETH tests $3,017 and the $3,101 50-day EMA and XRP rebounds to $1.90 from $1.83 with $1.96 resistance and $1.77 downside risk.
Related Instrument
