Mexican Peso Gains Ahead of FOMC Meeting

The Mexican peso gained today ahead of the Federal Reserve policy meeting on speculations that the Fed will maintain pace of its asset purchases, weakening the dollar and supporting risk-sensitive currencies.

The Federal Open Market Committee will announce its decision today and it is widely believed that quantitative easing will remain in place. The disappointing employment report certainly did not give an incentive for the FOMC to trim stimulus. Therefore it is likely that Fed’s QE will continue to support risky currencies.

USD/MXN fell from 12.9188 to 12.8481 as of 17:12 GMT today after rising to 12.9370 intraday.

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