In early November, USDMXN slipped below the 19.50 mark. However, economists at Commerzbank believe that risks are now skewed to the upside.

Banxico and the Fed

“The market is likely to keep an eye on whether and if so to what extent Banxico changes the speed of monetary policy tightening and whether it is therefore able to decouple from the Fed.”

“In view of key rate levels already reached on the one hand and the strong Peso on the other hand we consider upside risks to dominate in USDMXN.”