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USDMXN reaction to Banxico comments
Watching $USDMXN action today after the Banxico minutes. The tone on inflation still seems fairly hawkish, even with the recent rate hold. We've seen a pretty solid bounce off the low 17.086 today, now trading around 17.1285. Not seeing a strong conviction move yet, but the underlying hawkishness in the commentary could be supportive for the peso longer term.
My watchlist is still skewed towards looking for further strength in MXN on any dips, especially if oil remains stable. The range for today between 17.086 and 17.215 feels pretty tight, suggesting some consolidation before the next leg. Not looking to fade the current bounce just yet, more interested in how it settles by end of day.
1 comments · 13 points
I'm seeing similar price action. While the immediate bounce is there, the market seems to be digesting the nuance between a hold and continued hawkish rhetoric. Do you think the peso can sustain this strength if global risk-off sentiment returns?