- Within hours, Banxico announces its monetary policy decision.
- USD / MXN remains below 20.00.
The USD / MXN is falling for the second day in a row, although on Thursday it does so more moderately, and prior to the Bank of Mexico’s decision. The price is at 19.88 in the area of ​​the day’s lows, without making large variations.
The key event of the day will be the meeting of the Bank of Mexico. A rise of 25 basis points in the reference interest rate is expected, up to 4.50%. In this meeting, Banxico will introduce a new communication format which includes the individualization of votes and a forecast of inflation over a longer horizon.
The Mexican peso arrives at the meeting with some strength, possibly with the expectation of a new rise. On Thursday it is among the best performers, holding steady against the dollar. The greenback is bullish compared to most of the emerging markets, as a result of a fall in the equity markets.
Rabobank analysts, in a report released Thursday, estimate that USD / MXN will likely remain in the 19.80-20.20 range in the coming months.
Technical levels
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