Fed keeps rates steady, Banxico up next

FX:USDMXN   U.S. Dollar / Mexican Peso
The US Federal Reserve has kept interest rates steady at 5.25%-5.50% while continuing its balance sheet reduction as planned since May 2023.

In contrast, the Bank of Mexico (Banxico) might announce a rate cut tomorrow.

It's anticipated that Banxico could decrease its interest rate from 11.25% to 11%, potentially applying pressure on the Mexican peso. This could drive the USD/MXN rate closer to the 17.00 mark, diverging further from its 10-year low. Some Fib levels from its recent swing higher could also be some interesting, more assessable, targets

However, the possibility of a rate cut from Banxico is not guaranteed, given potential divisions within its Governing Council. Recent speeches by officials indicate a 3-2 split, with some members leaning towards a more accommodative approach, while others like Jonathan Heath and Irene Espinosa Cantellano favor a hawkish stance.

Import the BlackBull Markets Economic Calendar:

Free TradingView Premium with BlackBull Markets:

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.