MXN strength continues to gather steam - SocGen

Analysts at Societe Generale points out that Mexican Peso’s strength continues to gather steam and is expected to gain further momentum as we move ahead.

Key Quotes

“The lack of US trade hostilities, stability in oil, perception that Banxico will end its growth-choking tightening cycle and move to an easing stance, and attractive bond yields can keep the MXN on an appreciating path in the near term. We are more concerned as we enter 2018 due to political noise surrounding the Presidential elections (June 3) and the risks associated with a populist candidate prevailing. Nonetheless, through to year end, the MXN can make modest gains, with tail risks slanted toward larger gains.”