USD/MXN Bearish at 17.30 Post-Banxico Final Cut; Eyes 17.08 Support

USD/MXN trades at 17.30, down from YTD high of 18.14, with analysts turning bearish after Banxico's 25 bps cut to 6.50%—likely the final in the cycle—narrowing the US-Mexico rate gap from 11.25% in 2024. The peso initially slipped 0.8% on May 7 amid the expected cut, split 3-2 vote, easing inflation to 4.45%, and Hormuz tensions boosting USD safe-haven demand, while 10-year yields dipped to 7.82%. Commerzbank had warned pre-cut of MXN weakness from easing, reversing 4% YTD gains, but latest forecasts highlight technical downside toward 17.08 ahead of soft US NFP expectations.