Societe Generale analysts cite cooling inflation and record exports but warn of risks from US trade deal reviews.
The Mexican peso remains steady as inflation cools to 3.94% in May, falling below the 4% threshold. Banxico’s shift to a neutral stance has led markets to price potential rate hikes, reinforcing stability in the currency.
Exports to the US reached a record $50.7bn in April, bolstering Mexico’s position under the USMCA framework. However, uncertainty looms over the trade deal’s future, with the US pushing for periodic reviews instead of a straightforward renewal.
USD/MXN trading was capped below 17.50, while the USD/BRL rally stalled at 5.20, reflecting cautious sentiment amid the mixed outlook.