The USD/MXN is attempting a breakout above 20.50, which will also see rates take out the bearish trend line that has been in place since last year. At the time of writing, it was doing a good job at that. A closing break would pave the way for more gains in this pair, and losses for the Mexican Peso.
Emerging market currencies have been in the spotlight amid the Fed's aggressive hiking.
There’s a risk that inflation in developed economies might prove to be more persistent – something the Fed highlighted the risk of at their last monetary policy sitting, judging from the minutes of that meeting released on Wednesday.
If that's the case, more aggressive hikes could be on the way from the Fed and other developed economies, which should further reduce the appeal of EM currencies.
Expect a summer of turmoil in EM space.
Emerging market currencies have been in the spotlight amid the Fed's aggressive hiking.
There’s a risk that inflation in developed economies might prove to be more persistent – something the Fed highlighted the risk of at their last monetary policy sitting, judging from the minutes of that meeting released on Wednesday.
If that's the case, more aggressive hikes could be on the way from the Fed and other developed economies, which should further reduce the appeal of EM currencies.
Expect a summer of turmoil in EM space.