USD/MXN hovers around 17.5000, focus on Banxico policy decision – Crypto News – Crypto News
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USD/MXN hovers around 17.5000, focus on Banxico policy decision – Crypto News

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  • USD/MXN consolidates in a tight range of 17.4000 – 17.5900 since Monday.
  • Banxico is expected to keep interest rates unchanged at 11.25%,
  • Investors await Fed Chair Jerome Powell’s conference to gain additional insights into the interest rate trajectory.

USD/MXN treads water near 17.5000 during the European session on Wednesday. The pair has been trading within a tight range of 17.4000 – 17.5900 since Monday. Market participants await the interest rate decision by the Bank of Mexico (Banxico) scheduled to be released on Thursday.

Banxico is anticipated to keep rates steady at 11.25%, as its officials have made hawkish comments emphasizing the need for rates to remain at the current level for an extended duration.

On the other side, investors anticipate the US Federal Reserve (Fed) to pause its monetary policy tightening, exerting downward pressure on the US Dollar (USD). Nonetheless, market sentiment has curtailed the extent of its losses. The upbeat US Treasury yields might have provided support for the Greenback.

Additionally, Minneapolis Fed President Neel Kashkari voiced reservations about prematurely declaring the conclusion of the Federal Reserve’s rate hike cycle. Casting doubts on the sufficiency of current policy amidst a robust economy, Kashkari hinted that a potential uptick in inflation might justify further tightening.

Investors are seeking additional insights into the prospective path of interest rates, as Fed Chairman Jerome Powell is scheduled to address a conference in Washington, DC later in the North American session.

 

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