Thursday, July 24, 2008

Mexico to continue to raise rates

Mexico was very bid all day today against the dollar. As I have written in previous post’s I am looking for a test sub 10.0000. Couple this with hawkish talk coming from the Mexican central bank governor, Guillermo Ortiz.

Mexico's central-bank governor, Guillermo Ortiz, said inflation pressures may be building even as some food and energy prices ease, and signaled the bank will seek to stop rising costs from spreading.

This signals to me a clear sign that Mexico will lean toward a tighter interest rate policy in the months to come.

Look for spot Usd/Mxn to head lower and interest rate differentials to continue to widen.


Good Luck and Good Currency Trading



Post a Comment

Subscribe to Post Comments [Atom]

<< Home