The Mexican peso has withstood the tougher risk environment well. Economists at ING expect the USD/MXN to trade within a 20.00-20.50 range if Banxico follows the Federal Reserve with a 50bp hike.

AMLO starts to take an interest in Banxico policy

“One emerging risk for MXN is that President AMLO has just agreed a deal to hold a basket of 24 goods stable over the next six months. Might he expect Banxico to keep rates stable too?”

“Assuming Banxico follows the Fed with 50bp, we think USD/MXN can continue trading in a 20.00-20.50 range for the near term.”