- Analytics
- News and Tools
- Market News
- USD/MXN: Two major risk factors might contribute to some Peso weakening ahead – MUFG
USD/MXN: Two major risk factors might contribute to some Peso weakening ahead – MUFG
In March, the Mexican Peso appreciated from 18.343 to 18.047 against the US Dollar. Economists at MUFG Bank keep their view that two major risk factors might contribute to some MXN weakening ahead.
High interest rates might keep some attractiveness of MXN
“The Mexican finance minister stated its confidence on the soundness of Mexican banking system, not being impacted by the recent events abroad. In such scenario, we keep our view of moderate rather than sharp MXN weakening in the coming quarters.”
“Additionally, Banxico keeps committed to make inflation to converge to the target in the next years, which means high policy rates for longer in the current scenario of resilient high core inflation, thus keeping the MXN attractive as a carry currency.”
“We keep our view that two major risk factors might contribute to some MXN weakening ahead. Firstly, the slowdown/recession in the US might hit USD inflows into Mexico. Secondly, Lopez Obrador’s nationalistic policies especially on the energy sector may deter private investments. However, the MXN might continue to be supported by investment and exports from companies reallocating global supply chains into Mexico.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
