Economists at Société Générale are still bullish on the Mexican Peso. They expect the USD/MXN pair to trade in the 18.45-19.50 range in the coming weeks

MXN is likely to continue performing well

“The MXN is likely to continue performing well ahead despite likely slow growth in the US and Mexico in 2023 and somewhat overvalued conditions.”

“The MXN should benefit from a low current account deficit, sound macro stability and potential flows related to nearshoring due to geopolitical issues, particularly between the US and China. Moreover, attractive carry and low volatility as well as stable workers’ remittances should support the currency.” 

“We expect the USD/MXN pair to trade in the 18.45-19.50 range in the coming weeks.”