20 Feb 2015
Banxico might hike rates around June – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares the key technical levels for USD/MXN, and forecasts a probable near-June rate hike for Mexico if MXN continues to weaken.
Key Quotes
“According to the most recent minutes, Banco de Mexico has taken rate cuts off the table (for now). The weaker peso seems to be one of the key variables in their reaction function, and we believe it will help determine the timing.”
“If MXN continues to weaken at this pace, it is possible that Banxico will hike before or around the same time the Fed does (June, in our view)."
“For USD/MXN, support seen near 14.50, resistance seen near 15.00 and then 15.1560 (the recent high for this cycle).”
Key Quotes
“According to the most recent minutes, Banco de Mexico has taken rate cuts off the table (for now). The weaker peso seems to be one of the key variables in their reaction function, and we believe it will help determine the timing.”
“If MXN continues to weaken at this pace, it is possible that Banxico will hike before or around the same time the Fed does (June, in our view)."
“For USD/MXN, support seen near 14.50, resistance seen near 15.00 and then 15.1560 (the recent high for this cycle).”