Banxico Rate Hold Boosts Peso Carry Appeal Amid Global Rate Pressures

Banco de México's decision to hold its policy rate at 6.5% has maintained the peso's yield advantage for carry trade opportunities, boosting the currency's appeal despite global rate pressures.

The European Central Bank (ECB) has released updates to its collateral assessment procedures and haircut guidelines, which will come into effect from November 2026.

As a result of Banxico's move, EUR/MXN trades with sustained upward momentum and strong buying signals. The pair is expected to range between Mex$20.4551 to Mex$20.7273 over the next 2-3 days.