4 Mar 2015
USD/MXN has room for further upside – Rabobank
FXStreet (Edinburgh) - In the view of strategists at Rabobank, the pair will likely finish the year in higher levels.
Key Quotes
“Although we still think MXN looks cheap compared to fundamentals, demand for USD and caution on LatAm in general is weighing on the currency”.
“Momentum is fully in favour of a continued move higher in USD/MXN and we are yet to see convincing signs of exhaustion”.
“We do expect USD/MXN to end the year below current levels but there is room for a move higher in the short term, particularly if the rebound in oil proves to be a dead cat bounce and prices move lower again”.
“USD/MXN does appear to be trading somewhat asymmetrically with oil, i.e. the downside in crude hits MXN more than any upside provides support”.
Key Quotes
“Although we still think MXN looks cheap compared to fundamentals, demand for USD and caution on LatAm in general is weighing on the currency”.
“Momentum is fully in favour of a continued move higher in USD/MXN and we are yet to see convincing signs of exhaustion”.
“We do expect USD/MXN to end the year below current levels but there is room for a move higher in the short term, particularly if the rebound in oil proves to be a dead cat bounce and prices move lower again”.
“USD/MXN does appear to be trading somewhat asymmetrically with oil, i.e. the downside in crude hits MXN more than any upside provides support”.