Economists at Société Générale analyze the USD/MXN outlook forward of the Banxico assembly.
Break under 17.45 can lead USD/MXN in direction of subsequent projections at 17.10/16.95
“Banxico is prone to pause financial tightening immediately and go away the important thing fee at 11.25%. One other hike could be a shock, however wouldn’t be assured to be welcomed by the Peso if traders view the transfer via a unfavourable lens for financial progress.”
“An preliminary bounce is just not dominated out nonetheless 17.90 should be overcome for affirming a significant up transfer. Failure might imply persistence in down transfer.”
“Break under 17.45 can lead the pair in direction of subsequent projections at 17.10/16.95 which can be the low shaped in 2016.”