The Mexican Peso is now pulling away as the best-performing EM FX currency of 2023. Economists at ING expect USD/MXN to test the low of 2017 at 17.45.

Peso stands to be the prime beneficiary of 'nearshoring' trends

“Remittances back to Mexico remain high at $5bn per month, but this year’s hot topic will remain ‘nearshoring’ and the promise of large FDI inflows into Mexico.”

“Pressure is building for a USD/MXN to break below the 17.45 low of 2017 – and only long MXN positioning stands in the way.”