USD/MXN: Still see downside potential - Rabobank

USD/MXN has managed to hold its ground under 20 for now but analysts at Rabobank still see downside potential for USD/MXN as limited and still favour a move north of 20.

Key Quotes

“Recent price action has been choppy with much in the way of events driving USD/MXN.”

“We now expect the FOMC to vote for a 25bp hike in March and have adjusted our Banxico call to reflect a follow-the-Fed move of 25bp at the 30th March meeting.”

“We saw the first of many new FX auctions aimed at supplying the market with USD without impacting reserves. These may relieve pressure but will not prevent further upside reemerging.”