13 Jun 2014
Policy rate cut limits MXN appreciation potential - UBS
FXStreet (Córdoba) - The UBS analyst team observes that the recent policy rate cut by the Mexican Central Bank limits the appreciation potential of the Mexican peso (MXN).
Key Quotes
"The recent policy rate cut by the Mexican central bank limits the appreciation potential of the Mexican peso, in our view".
"Meanwhile, faster growth and inflows from foreign direct investments, triggered by the implementation of recently approved reforms, are expected to remain supportive factors".
"Still, we trim our benign view on the Mexican peso somewhat and therefore revise our three, six and 12-month forecasts to 12.9, 12.9 and 12.7, respectively, from 12.7, 12.7 and 12.5 previously".
Key Quotes
"The recent policy rate cut by the Mexican central bank limits the appreciation potential of the Mexican peso, in our view".
"Meanwhile, faster growth and inflows from foreign direct investments, triggered by the implementation of recently approved reforms, are expected to remain supportive factors".
"Still, we trim our benign view on the Mexican peso somewhat and therefore revise our three, six and 12-month forecasts to 12.9, 12.9 and 12.7, respectively, from 12.7, 12.7 and 12.5 previously".