Mexican Peso: Carry and value support Peso – TD Securities

TD Securities views the Mexican Peso (MXN) favourably, noting supportive carry and value metrics and cleaner positioning. Despite global equity risk-off, they expect USD/MXN to decline back toward 18.00 into year-end, consistent with their forecast path that keeps the pair around 18.00–18.40 in 2027 before drifting higher to 19.00 by 2028.

Peso backed by carry and valuation

"Carry and value are more supportive for MXN. Given USDMXN's increased correlation to relative equity performance over the past year and clean positioning, we continue to believe that USDMXN could retrace back to 18.00 into year-end, even amid a backdrop of global equity risk-off."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)