The Mexican Peso (MXN) continues to perform well and ride out Trump's fears. Economists at ING analyze MXN outlook.
Investors will favour the Mexican Peso
A 25 bps rate cut in March now looks likely. However, Banxico has said it will be very cautious in its rate cutting cycle and the starting point for real rates in the 6% area suggests the Peso does not have to sell off as easing starts.
Fourth quarter growth slightly disappointed last year, but consensus 2024 GDP growth is still 2.2% – which should be supported by loose fiscal policy this year. Elections in Mexico are held in June.
Factoring US elections is a tough call into the Peso, but a variety of positive factors suggests MXN outperforms its forward curve.
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.