# Mexican Peso Gains after Banxico Front-Loads Rate Hikes, USD/MXN Sinks | Forex trading, free forex education | Forex.ca

> Banxico surprised markets by raising its overnight rate 50 basis points to 5.50% on December 16, double the quarter-point move investors expected. The statement signaled further hikes in 2022 as inflation expectations rose. The peso strengthened, pushing USD/MXN to its lowest level since November 19.

- Date: 2021-12-17 · published 2021-12-17T12:00:00.000Z
- Category: macro · region Mexico · magnitude low
- Page: https://feedsoft.ai/events/43823-mexican-peso-gains-after-banxico-front-loads-rate-hikes-usd-mxn-sinks-forex
- Commodities: [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

A firmer peso lowers the peso cost of imported feed ingredients for Mexican buyers. Continued tightening also signals softer domestic demand for meat and feed.

## Read by commodity

- USDMXN: bearish ▼

## Sources

- forex.ca: https://www.forex.ca/mexican-peso-gains-after-banxico-front-loads-rate-hikes-usd-mxn-sinks/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.