MXN: Little room for relief - Rabobank

Christian Lawrence, Senior Market Strategist at Rabobank, notes that the pressure on MXN continues and there is little reason for it to stop in the coming weeks.

Key Quotes

“USD/MXN awaits Trump’s trade plans with baited breath but we expect an aggressive stance.”

“We see little room for MXN relief and despite our bearish forecast, we still the risk to that view as skewed to the upside.”

“We still see USD/MXN hitting 23 in the coming months and the technical target of 23.742 we highlighted back in early December could come to fruition.”

“Intervention from Banxico is highly unlikely to provide any lasting support for MXN as the market is too liquid and Mexico’s reserves will start to evaporate very quickly if it continues.”