We are constructive on the MXN and see the local swap curve bull steepening.

The MXN should continue to benefit from a soft USD, the Fed on pause, a friendly risk appetite setting, and easing UST yields. 

We expect the USD/MXN pair to trade in the 16.40-18.11 range in the coming quarters. 

The local curve is likely to bear flatten as Banxico starts its easing cycle, the risk premium remains low in the near term and UST yields drop.