Forex Investment and Currency Trading

There are two main upside risks to the MXN. First, thus far, the US downturn has neither affected manufacturing exports nor growth in Mexico. This is because the auto sector has remained robust, while Mexico is becoming a key supplier of intermediate manufacturing inputs for booming US exports. If this trend continues, then the US export story would mitigate the contractionary effects of the US recession in Mexico. This is because Banxico would raise interest rates if supply price shocks in the 1Q2008 contaminate expected inflation and price formation. In fact, since the introduction of the new fiscal reform (which [...]

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