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
As of the Asian session on July 3, gold prices ( XAUUSD) extended yesterday's rally, climbing to an intraday high of $4,195.52. Looking at the charts, gold has gained over $100 in total s
Gold gains momentum above $4,100 after weak US NFP data Gold price (XAU/USD) gains traction to around $4,125 during the early Asian session on Friday. The precious metal extends the rally after weaker-than-expected US Nonfarm Payrolls (NFP) data reduced expectations of Federal Reserve (Fed) interest rate hikes this year.
Gold price (XAU/USD) gains traction to around $4,125 during the early Asian session on Friday. The precious metal extends the rally after weaker-than-expected US Nonfarm Payrolls (NFP) data reduced expectations of Federal Reserve (Fed) interest rate hikes this year.
As of the European session on July 2, WTI ( USOIL) crude oil prices fluctuated with a weak bias around $68, extending their prior downward trend. From a technical perspective, against the
Japanese Yen recovers sharply from 40-year low as intervention bets trigger short-coveringThe USD/JPY pair comes under intense selling pressure and plummets to the 161.00 neighborhood heading into the European session on Thursday, snapping a three-day winning streak to the highest since 1986 set the previous day.
The USD/JPY pair comes under intense selling pressure and plummets to the 161.00 neighborhood heading into the European session on Thursday, snapping a three-day winning streak to the highest since 1986 set the previous day.
On Wednesday (July 1), Eastern Time, Federal Reserve Chairman Warsh stated at the ECB's annual forum in Sintra, Portugal, that while recent US inflation expectations and inflation risks h
Related Instrument
