The Mexican Peso (MXN) is expected to maintain a stable trading range against the U.S. dollar, with forecasts suggesting it will move within 16.00 to 22.00 MXN per USD throughout 2026. This pattern has been consistent since July 2015. Analysts from UBS have a slightly positive outlook, predicting a strengthening of the peso due to potential easing policies from the Federal Reserve. Their projections for the USD/MXN exchange rate are approximately 18.4 in Q1, rising to 18.7 in Q2, followed by minor fluctuations, ending at 18.2 in Q4 2026.
Monex also shares a favorable view, estimating the peso will finish 2025 at 18.15 per USD and reach around 19.00 by the end of 2026. This forecast is based on expectations of a more stable economy and fewer interest rate cuts by Mexico’s central bank, Banxico.
However, some risks could influence the peso's performance. Analysts warn of potential economic slowdown, declining remittances, and differences in policy between Banxico and the U.S. Federal Reserve, which could lead to a slight depreciation of the peso next year.
In terms of recent trading data, the MXN to USD is currently at 7-day lows near 0.055624, which is 1.5% above its 3-month average of 0.054794. The MXN to EUR has reached 90-day highs near 0.047822, also 1.6% above its 3-month average. The MXN to GBP has seen 14-day highs at 0.041502, reflecting a minimal increase over its recent average, while the MXN to JPY has surged to 90-day highs close to 8.7845, significantly exceeding its 3-month average by 3.4%.
Overall, the outlook for the Mexican peso suggests continued stability in 2026, although market participants should pay attention to both domestic and international economic developments that might influence exchange rates. For more in-depth insights, a related video is available, titled “Will the dollar rise or fall? What no one is telling you about the Mexican peso in 2026.”
