- Analytics
- News and Tools
- Market News
- USD/MXN: A few of the factors benefiting the Mexican Peso in 2023 to offer a headwind going forward – CIBC
USD/MXN: A few of the factors benefiting the Mexican Peso in 2023 to offer a headwind going forward – CIBC
For the Mexican Peso (MXN), slowdowns in remittances and vehicle exports portend to downside in the coming quarter, economists at CIBC Capital Markets say.
Changing tides
We expect a few of the factors benefiting the MXN (i.e. carry, remittances growth, and manufacturing exports) in 2023 to offer a headwind for the MXN going forward, in line with our Q1 USD/MXN forecast of 18.00.
We maintain our call for consecutive 25 bps rate cuts starting in March. Also, we anticipate an increase in the magnitude of Banxico’s rate cuts in late 2024, bringing the overnight rate to 9.25% (or 200 bps worth of cuts) by year-end. This compares to our revised forecast of four 25 bps rate cuts by the Fed.
© 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
