Banxico is likely to make its first rate cuts in the near future, but it is also likely to emphasize that these will only be gradual adjustments for the time being. This would be in line with its hawkish stance over the past two years.

If Banxico manages to convince the markets of its continued cautious approach in two weeks, the Peso should continue to be one of the better performing currencies. However, the very fact that rate cuts are now on the agenda should make it clear that things could get bumpier for the MXN from here.