Banxico may to keep monetary policy unchanged

USD/MXN is poised to trade in tandem with the rest of the EM block and commodity prices, as no substantial changes are expected in the inflation report, which will be released next Wednesday.

It is believed that Banxico will confirm its willingness to keep monetary policy unchanged, in line with its latest monetary policy statement, as inflation and inflation expectations are running close to historical low levels. 

"In the absence of substantial FX depreciation accompanied by a high increase in consumer prices, we cannot find a single reason why Banxico would alter its perspective regarding monetary conditions amid concerns of lower growth around the globe. These events should support our trade recommendations of overweighting Mexico in the long end, hedging any FX exposure", says Barclays.