The Mexican Peso continues to be one of the best performing currencies of the year, second only to the Colombian Peso. The economists of ENG analyze the perspectives of the MXN.
Political calendar in sight
Investors like the high carry in Mexico, the good performance of the economy and the exposure to surprisingly strong growth in the US so far this year. In fact, workers’ remittances to Mexico hit a record $5.7 billion in May.
Banxico promises a prolonged period of high rates (currently the official rate is 11.25%), but probably cut them with the Fed in the first quarter of 2024.
Politics seems to be the only shadow on the peso’s strong history, with the Mexican elections next June and the US elections in November in the spotlight. For the moment, however, MXN expected to maintain gains.
USD/MXN:-One month in sight, 17.0, three months in sight 17.0, six months in sight 17.0 and 12 months view at 16.50
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.
