atively benign future scenario for inflation. The tone of the meetings' minutes was noticeably more hawkish than that of previous months. And while Banxico officially does not have a target for the currency the price action of the MXN and the Exchange Commission's decision to increase the amount of the

bstantially across countries and Presidential elections are scheduled to take place in Brazil and Mexico. Mexico shoi t M> N despite a more hawkish Banxico The central bank surprised markets by hiking its policy rate 25bp in its December meeting despite Mexico's negative output gap and a relatively ben

orities switched from the currency's regime from a managed exchange rate to a free float. To retain some control over the Peso, representatives of Banxico and the Finance Ministry who comprise the Exchange Commission (EC) set several rule-based intervention schemes aimed at managing reserve accumulat

daily every Mexican business day, at 12pm. The FIX is used, for example, as the metric to trigger rule-based FX market interventions undertaken by Banxico, and has also been used as a reference rate for various onshore contracts, but has no relevance for settling FX market transactions themselves. Ver

Mexico, improved US growth prospects, an upward bias in crude oil =rices, and low direct exposure to European stress. The trade also =enefits from Banxico policy switch to USD sales at beginning of the year=2E =o:p> =orecast: JPMS LLC year-end forecast for USDMXN i= 12.00. With spot current around 12.