USDMXN – could briefly see 19.50 – ING
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for PREMIUM VERSION HERE and login below to read further [lwa][/s2If] [s2If current_user_can(access_s2member_level4)]
USD/MXN has dropped below the 20 level. In the opinion of analysts at ING, the pair could test 19.50 in the not too distant future.
“MXN implied yields through the 3m forwards are near 10% and with Banxico targeting a stable currency – by keeping a 625 bps rate spread over the Fed – the peso should see good demand now. USD/MXN could briefly see 19.50.”
“Expect Banxico to match the next Fed increase (50 bps or 75 bps) in September. Access to US gas prices is an advantage for Mexico.”
[/s2If]
