Free Trial

Banxico - Dovish Shift?

MEXICO

Banxico cut 25 bps to 4.00%, in line with the majority of forecasts. The surprise came with the unanimous decision by the Governing Board, including new Deputy Governor Borja. Most have interpreted this as a marginal dovish shift, however some analysts believe the statement's hawkish language likely made the unanimity behind the cut possible. We will provide a further review later today.


A bid in the US dollar has underpinned USDMXN, trading 0.5% higher today, with some added potential headwinds for the Peso lingering, as split forecasters digest the implications for lower rates. 20.0742 was the important level on the way down, which we are now hovering just below.


  • 1800GMT/1300ET Mexico Formal Job Creation
  • 1530GMT/1030ET: Banxico Deputy Governor Jonathan Heath speaks at JPMorgan event

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.