The Mexican Peso (MXN) experienced minor gains against major currencies on Thursday, ahead of the Bank of Mexico’s (Banxico) September monetary policy meeting. The decision on interest rates is expected to have a significant impact on the peso’s exchange rate.

Analysts Forecast 25 Basis Point Rate Cut:

Economists and analysts are widely predicting that Banxico will reduce its official interest rate by 25 basis points (bps) at today’s meeting. This would bring the rate down to 10.50% from its current level of 10.75%.

While recent inflation data showed a slight decline, other economic indicators suggest a more moderate rate cut is appropriate. The decision at the previous meeting was not unanimous, indicating potential for a smaller reduction.

Technical Analysis: Upward Trend in USD/MXN:

The USD/MXN pair has been trending upwards in recent months. A break above the September 25 high could confirm further upside potential, with a target of 20.15.