Ella 
USD/MXN fell to 17.1800 during the European session on Monday, giving up recent gains. Markets tend to believe that the Federal Reserve may cut interest rates in the first half of 2024, causing the dollar to fall last week.
Although U.S. bond yields rose, the dollar fell to around 103.60, with the 2-year U.S. bond yield at 4.90% and the 10-year U.S. bond yield at 4.46%.
Bank of America revised its forecast, expecting the Fed funds rate to rise for longer. The 10-year yield is expected to hit 4.25% by the end of 2024.
The Bank of Mexico is expected to keep interest rates unchanged at 11.25% in an effort to achieve its 3.0% inflation target by 2025. The resolution will be influenced by Mexican inflation data, which fell back to an annual rate of 4.26% in October.
Central bank governor Victoria Rodriguez Ceja hinted on Monday that a rate cut may be possible next year. Deputy Governor Jonathan Heath stressed on Tuesday that monetary policy would stick to its restrictive stance.
Market attention on Tuesday will be on the FOMC meeting minutes, which will provide insight into the Federal Reserve Board’s decision to keep interest rates, along with the release of Mexican retail sales on Wednesday.
