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The Bank of Mexico cut its benchmark rate by 25 basis points to 7.75%, as widely expected, with two board members voting for a 50-basis-point cut. The same day, US House Speaker Pelosi said the House would move ahead on the USMCA trade deal to replace NAFTA.
USD/MXN paused near technical resistance around 19.67 after the news.
Mexico is a major buyer of US corn, sorghum and soymeal, so a weaker peso and progress on USMCA affect the cost and volume of those imports. Both developments are relevant to trade flows but have only a modest direct price effect.
forex.comGlobal authorSep 26, 2019Not 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.
