Banxico is forecast to raise rates today while the Peso is the second-best performer in LatAm after the CLP. MXN is set to enjoy further gains unless the central bank delivers a dovish surprise, economists at Société Générale report.

Immediate support for USD/MXN runs at 18.50

“Barring a dovish shift by Banxico, a de-rating of risk assets and underwhelming incoming data from China, the Mexican Peso may have more room to run.”

“Last May's low near 19.40 must be overcome to affirm an extension in rebound.”

“In case the pair violates the support zone at 18.50/18.30, there could be a risk of deeper downtrend towards 17.95 and projections of 17.60.”