The USD to MXN exchange rate is currently bearish.
Key drivers include the interest rate differential, as expectations for U.S. Federal Reserve rate cuts could weaken the dollar. The Mexican Peso is anticipated to gain strength due to this easing of U.S. monetary policy. Additionally, stable economic forecasts for Mexico suggest a robust outlook which supports the MXN.
Over the next few months, the USD/MXN is likely to trade within a defined range, reflecting a stable market environment. Recent data shows that the USD at 17.98 is down 1.5% from a three-month average of 18.26, maintaining a relatively tight trading range from 17.89 to 18.69.
Upside risks may stem from unexpected U.S. economic resilience that could bolster the dollar. Conversely, a potential slowdown in Mexico’s economic growth or weakened remittances may pressure the peso, leading to a depreciation against the dollar.