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20 May 2015
USD/MXN seen at 15.20 in Q4 2015 – JP Morgan
FXStreet (Edinburgh) - Analysts at JP Morgan have revised higher their target for the pair towards the end of the year to 15.20 from 14.90.
Key Quotes
“We now expect USD/MXN to close the year at 15.20 (previously14.90)”.
“We have revised our year-end forecast up 30 cents given that GDP growth has been revised downwards, while cyclical indicators suggest Mexican policy rates will track the Fed (to prevent material exchange rate weakness, which would put upward pressure on inflation)”.
“Banxico’s reaction to the Fed liftoff, together with cumulative FX intervention as well as inflows following energy reform auctions, is likely to help MXN to strengthen starting in 4Q15”.
Key Quotes
“We now expect USD/MXN to close the year at 15.20 (previously14.90)”.
“We have revised our year-end forecast up 30 cents given that GDP growth has been revised downwards, while cyclical indicators suggest Mexican policy rates will track the Fed (to prevent material exchange rate weakness, which would put upward pressure on inflation)”.
“Banxico’s reaction to the Fed liftoff, together with cumulative FX intervention as well as inflows following energy reform auctions, is likely to help MXN to strengthen starting in 4Q15”.