USD/MXN: Mexican and US 2024 elections will add noise and can weigh on the Peso – TDS

Mexican Peso’s (MXN) returns can be explained entirely by US factors. Economists at TD Securities analyze MXN outlook.

US slowdown and a steep Fed cutting cycle in 2024 will allow markets to price in more cuts by Banxico

MXN returns can almost be solely explained by US and global macro factors. Hence, a US slowdown and a steep Fed cutting cycle in 2024 will allow markets to price in more cuts by Banxico and bring MXN underperformance.

Moreover, the Mexican and US 2024 elections will add noise and can weigh on the Peso.