The Mexican Peso (MXN) continues with its good performance and overcoming fears around Trump. ING economists analyze the outlook for the MXN.
Investors will favor the Mexican peso
A 25 basis point rate cut in March now looks likely. However, Banxico has said it will be very cautious in its rate cut cycle. and the starting point for real rates in the above 6% area suggests that the Peso does not have to sell off when easing begins.
Fourth-quarter growth slightly disappointed last year, but consensus GDP growth for 2024 remains 2.2%, which should be supported by loose fiscal policy this year. Elections are held in Mexico in June.
Factoring in the US elections is a tough call in elPeso, but a variety of positive factors suggest MXN outperforms its forward curve.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
