Congressional Votes Key in Mexican Presidential Election

All eyes will be on Mexico’s presidential election on Sunday, but the key to the country’s future will rest on how the congressional contests shake out.

According to a poll conducted in late June by Mexico-based Parametria, the left-wing Morena party is poised to win the most seats in both the lower house and the senate. The poll showed Morena had 41 percent of voter support in the house and 38 percent in the senate.

Morena is led by leftist firebrand Andres Manuel Lopez Obrador, known by his initials AMLO, who holds a commanding lead in the country’s presidential race. Some of Lopez Obrador’s policy proposals have scared investors intodumping Mexican stocks, however, fearing they will cripple Mexico’s economy. But whether or not Lopez Obrador can move forward with them will depend on how much support from congress he gets.

“The main factor people should be looking out for is the composition of the lower house and senate,” said Reggie Thompson, Latin America analyst at Stratfor. “That’s really going to determine what kind of legislative measures he will pursue.”

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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