The Mexican Peso (MXN) is experiencing its worst monthly performance since August 2024, with losses nearing 5% against the US Dollar, according to Societe Generale’s Latam strategy team [1]. The recent rally in USD/MXN has seen the pair break above the 17.00 mark and reclaim its 200-day moving average, which is situated around 17.40/17.35 [1]. This move has brought USD/MXN close to Societe Generale’s revised year-end forecast of 18.00, a level where the bank anticipates consolidation due to its psychological significance [1].
Societe Generale notes that USD/MXN recently crossed a multi-month descending trend line, further reinforcing the bullish momentum for the Dollar against the Peso [1]. The next technical hurdle is identified at the March peak near 18.16, which could serve as an interim resistance level [1]. Should the rally continue beyond 18.16, the bank highlights potential upside targets at 18.55 and 18.80 [1].
The Peso’s decline is attributed to higher US yields, which have weighed on risk sentiment and contributed to the currency’s underperformance [1]. No specific market reactions or analyst opinions beyond Societe Generale’s technical outlook are provided in the source article [1].
CONCLUSION
The Mexican Peso is under significant pressure, nearing a 5% monthly loss against the Dollar and approaching key technical levels. Societe Generale anticipates consolidation around 18.00 for USD/MXN, with further upside possible if resistance at 18.16 is breached. The move is driven by higher US yields and deteriorating risk sentiment.