Mexican Peso Forecast Cloudy Ahead of US Elections

Mexico’s currency has been unusually volatile this year, and some attribute it to anti-Mexico and protectionist sentiment raised during this U.S. presidential election season.

“MXN (peso) is the currency most at risk from uncertainty and trade protectionism risks,” Morgan Stanley strategist Hans Redeker said in a recent note.

The Mexican peso began under-performing other emerging markets earlier in the year when Republican presidential candidate Donald Trump started to talk more about deportations, ditching trade deals such as the North American Free Trade Agreement. There also was talk about having Mexico pay for a border wall by blocking money transfers, or so-called remittances.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza