Matt Culley, portfolio manager at Janus Henderson, said that macroeconomic management in Mexico has been very good and that there is no budget deficit problem or runaway inflation, which reduces the risk of rebound events, so He said the potential benefits of supply chain diversification make Mexico an attractive location for foreign direct investment. “That being said, the weight starting point here is strong,” he said.
For their part, CI Banco analysts pointed out that the money market also awaits the news of the situation in China, with the publication of relevant information such as figures from the external sector, consumer and producer prices and bank credit.
“It will be a week of transition for the Mexican peso. Once the issue of the debt ceiling is resolved, attention is focused on the next steps of the Federal Reserve (Fed, for its acronym in English). In that sense, they will be relevant some economic indicators such as the ISM for services. The futures market remains very volatile with respect to the possibility of a pause or a new increase of 25 basis points,” said CI Banco analysts.
Banco Base analysts said that from a technical perspective, the peso indicates that the downward trend in the exchange rate will continue. For now, they mentioned that the support of 17.42 pesos, minimum of the year, which will continue to be a difficult level to break, since they expressed that an increase in the purchase of exchange hedges is observed at that level. If it is pierced, the exchange rate can go to the level of 17.20 pesos per dollar.