top of page

📝See MXN Rates Underpricing A More Abrupt Slowdown: Deutsche Bank Strategy

Writer's picture: Rosbel DuránRosbel Durán

Low imbalances and strong remittances remain supportive in the near term, however, we see the case for the MXN not as compelling as last year while rates seem to underprice the risks of an abrupt slowdown.

On bonos, nominal bonds are attractive vs linkers. Favouring belly interest-rate swaps as curve underprices the risk of a more substantial slowdown over the next couple of years.

External accounts are expected to remain balanced but a weakening of remittances could hurt the strength of the MXN. We forecast current-account deficit ending 2022 at 1.2% of GDP and narrowing to 0.9% in 2023 as imports slow. We favour short MXN/BRL into 2023. - Deutsche Bank Strategy



0 comments

Comments


© 2024

CableFXWHITEdropshadow.png
  • Twitter - White Circle

Investing and trading involve risk. This includes the possible loss of principal and fluctuations in value. There is no assurance that objectives will be met. Do not risk capital that you cannot afford to lose.  

bottom of page