USD/MXN: Peso should continue to perform well – ING

Banxico meets today. Economists at ING analyze Peso outlook ahead of the Interest Rate Decision. 

No change is expected

Today, look out for a Banxico policy meeting. This follows larger-than-expected cuts in Brazil and Chile over recent weeks. No change is expected, but investors are on the lookout for any hints of easing later this year. 

November is seen as a popular month for the first cut, but market pricing for the Banxico easing cycle is already fairly aggressive at 300 bps+ for the next two years. The Peso should continue to perform well, however.