Canadian and Mexico Currencies Rise on NAFTA Hopes

Helmholtz Watson

Banxico keeps rates unchanged at 7.5% as expected

The decision was unanimous

Prioritizes the MXN impact on CPI ahead of Fed posture
Lists agricultural prices, labor costs among additional MXN and CPI risk
CPI slowdown so far in 2018 in line with expectations
Mexican economy is in best position to face shocks
Private demand has continued to expand this year

probability of negative NAFTA outcome reduce recently
NAFTA, Fed, election present MXN and CPI risks
Mexico economy faces complicated panorama going forward