Mexico’s CB may raise rates even before US Fed

The recent Mexican peso outperformed all the regional currencies was prompted by the exchange commission's recently announced measures to support MXN and the weaker USD performance across the board. 

In addition to this, central bank governor, Mr. Carstens, was in the tape stating that Banxico (CB) could raise rates "independently of the US Fed" further propelling the intraday peso performance, says Commerzbank. 

Finally, the MoF has started negotiations to hedge oil receipts that are relevant for the 2016 budget proposal to be submitted later in the year. This measure is a practice that Mexico has been implementing in the past years in order to better plan the revenue side of the government's budget and prevent negative fiscal surprises due to potentially lower oil prices. This set of measures in addition to Mexico's correlation to the global manufacturing cycle (less so to commodities) should continue to translate into further support for the MXN in the next days, argues Commerzbank.