USMCA Review Risks Weigh on Mexican Peso – Societe Generale

Societe Generale analysts Dev Ashish and Brendan McKenna highlight that ongoing uncertainty surrounding the United States-Mexico-Canada Agreement (USMCA) review is set to prolong policy risk for Mexico. This uncertainty is expected to weigh on economic growth and put pressure on the Mexican peso.

The note also touches on the stance of Mexico's central bank (Banxico), although specific policy expectations were not detailed. The analysts see the prolonged review as a key headwind for the currency in the near term.