Economists at CIBC Capital Markets update their USD/MXN forecasts.

USD/MXN Q1 forecast revised lower to 19.50

“We have revised our USD/MXN Q1 forecast lower to 19.50, from the previous 20.00, but kept our year-end forecast at 19.80.”

“Local and external dynamics remain supportive of the Peso in the immediate term; nevertheless, Mexico’s large dependence on US growth is likely to prompt quick and sharp rebounds in USD/MXN should US labour/growth indicators deteriorate in the coming months.”

“Q2 2023: 20.00 | Q3 2023: 20.50 (USD/MXN)”