USDMXN made new lows since Election Day today.
The Banco de Mexico is expected to keep the tightening going by raising rates by 0.25% to 6.5%. The central bank has raised rates from 4.75% before election to the current 6.25% to counteract the weakness in the currency and to stem inflation pressures. The pace of increases is expected to slow however as the currency continues to retrace the surge since the election. The rhetoric from the Trump administration has been more sanguine compared to the saber rattling that occurred prior to the election.
The Banco de Mexico is expected to raise rates by 0.25% at the top of the hour
