The Mexican Peso is the only larger currency that was able to appreciate against the US Dollar in May. Economists at Commerzbank expect MXN to remain strong.
The Peso was able to appreciate even in times of rising Fed rate hike expectations in May.
We assume that the Peso might be able to appreciate a little bit further as a result of Banxico’s hawkish approach, the promising growth environment and record high remittances.
Our target in USD/MXN remains 17.50.
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