USD/MXN: A hold by Banxico should not be market moving for the Mexican Peso

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USD's drubbing continues into a new week. Economists at TD Securities analyze the FX market outlook.

USD lower theme to continue this week We expect the USD lower theme to continue this week with fewer risk events on the docket.

We expect RBA to hike by 25 bps which is a close call; we expect further upside in AUD from relative rate differentials and a China rebound. A hold by Banxico should not be market moving for the MXN. CPI will be more important as persistence in core inflation can delay expectations of a cutting cycle in Mexico.

 

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