The Mexican Peso edges lower prior to key inflation data and the Banxico May policy meeting. The Bank of Mexico is expected to keep rates unchanged but there is a risk of a revision to its forecasts. USD/MXN continues bumping along the bottom of a short-term range. The Mexican Peso is trading down about a quarter of a percent against US Dollar on Thursday ahead of key inflation data and the Bank of Mexico policy meeting, scheduled for later in the day.
” “Considering still-elevated domestic inflation, an initial Fed rate cut that is likely still several months away, and some sensitivity to the possibility of a weaker Mexican currency, we believe Banxico policymakers will opt to hold their policy rate steady at 11.00% next week,” Wells Fargo concludes. Technical Analysis: USD/MXN on the floor of short-term range USD/MXN – the cost of one US Dollar in Mexican Pesos – continues to bump along the bottom of a short-term range, with a floor at 16.