Mexico’s central bank (Banxico) is expected to lower its policy rate by 50 basis points on Thursday, note TD Securities analysts and say that they see the bank emphasizing the large output gap with any hawkish tone focusing on inflation uncertainty. Key quotes “We believe that this will not be the last 50bp cut by Banxico, particularly given general peso stability.” “Despite the substantial cumulative easing priced-in to 1yr rates in Mexico, the peso continues to provide one of the hightest 1-year implied returns in EM, lagging only ARS, TRY, and IDR.” “With the market only pricing in 25bps less in easing than our view out to a year, and thanks to a substantial interest rate buffer to the USD, we believe there is little scope for MXN to be hampered by the cut, or by a more dovish sounding central bank.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin Technical Analysis: BTC/USD is stable but an explosive move towards $13,000 could happen at any moment FX Street 2 years Mexico's central bank (Banxico) is expected to lower its policy rate by 50 basis points on Thursday, note TD Securities analysts and say that they see the bank emphasizing the large output gap with any hawkish tone focusing on inflation uncertainty. Key quotes "We believe that this will not be the last 50bp cut by Banxico, particularly given general peso stability." "Despite the substantial cumulative easing priced-in to 1yr rates in Mexico, the peso continues to provide one of the hightest 1-year implied returns in EM, lagging only ARS, TRY, and IDR." "With the market only pricing in 25bps less… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
