USD/MXN: 17.00 in reach for the first time since December 2005 – SocGen

The Mexican Peso rallied for fourth straight week. Economists at Société Générale analyze USD/MXN outlook.

Dovish pivot by Banxico?

The Fed pause was another shot in the arm for the Peso and puts 17.00/USD in reach for the first time since December 2015.

A dovish hold by the Banxico this Thursday may put the brakes on the MXN rally. We expect no change in the key overnight rate at 11.25% for second straight month. The tone in the statement could become less hawkish after headline inflation declined below 6%.