Mexico Banxico Interest Rate Decision meets forecasts (7%)

💡 DMK Insight

Banxico’s decision to maintain interest rates at 7% is a pivotal moment for traders in the forex market. With inflationary pressures still a concern, this decision signals a cautious approach that could impact the Mexican Peso (MXN) against major currencies. Traders should keep an eye on the USD/MXN pair, especially if the Fed’s upcoming decisions diverge from Banxico’s stance. If the Peso strengthens, it could break through key resistance levels, potentially leading to a bullish trend. Conversely, if the Fed maintains a more aggressive rate hike path, we might see the Peso weaken, creating opportunities for short positions. Watch for volatility in the coming weeks as economic indicators are released, particularly any shifts in inflation data or employment figures that could influence future rate decisions.