The EUR/MXN currency pair hovered above a fresh low of 20.3304, its weakest level since August 1st 2024, ahead of the outcome of the European Central Bank’s and the Mexican central bank’s policy meetings.
The European Central Bank is largely expected to keep its main refinancing operations rate intact at 2.15% at its February 5th policy meeting.
And, the ECB deposit facility rate is expected to be kept at 2.00%.
In December, the ECB Governing Council reaffirmed its objective of bringing inflation back to the 2% target over the medium term and reiterated that rate decisions would continue to be taken on a meeting-by-meeting basis.
ECB President Lagarde emphasized that the central bank did not have a predetermined path for interest rates and, given the high degree of uncertainty, it could not provide forward guidance.
Meanwhile, Banco de México is largely expected to keep its key policy rate without change at 7% at its February 5th meeting, following 12 consecutive rate cuts in an easing cycle that began in March 2024.
The EUR/MXN currency pair was last up 0.19% on the day to trade at 20.3874.
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