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ING warns that Banxico has not matched the Federal Reserve's tightening pace, which normally keeps USD/MXN stable via a 600bp spread. Mexico's policy rate is 6.50% while markets price a higher path as the Fed tightens about 300bp.
ING expects the peso to come under pressure, though it sees Mexico as better positioned than South Africa.
A weaker peso lowers the cost of Mexican imports and can shift feed demand patterns for US exporters; the currency move is mainly a macro signal for Mexican buyers' purchasing power.
teletrade.orgApr 22, 2022Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
