June 05, 2024 10:56 GMT
MXN Stabilises Following Post-Election Rout
MEXICO
- The Mexican peso has stabilised on Wednesday, with USDMXN (-1.30%) extending a pullback from the post-election spike. The pair reached as high as 18.1936 during yesterday’s session, following an impressive 7.5% rally off the week’s lowest levels, although has now returned closer to 17.60. The aggressive moves were prompted by market concerns over the potential for future constitutional changes to be implemented by the increased Morena party powers in congress, likely exacerbated by positioning dynamics for the currency.
- Via a Bloomberg article, Morgan Stanley have scrapped their positive view of Mexican stocks. “Mexico finds itself in an unprecedented situation and we are in wait-and-see mode on key backstops,” strategists wrote in a note Tuesday, downgrading the country’s equities to an equal-weight recommendation within their Latin America portfolio.
- Mexico consumer confidence will cross at 1300BST/0800ET. Separately, US Ambassador to Mexico Ken Salazar will speak about the future of the US-Mexico bilateral relationship in an event hosted by the Atlantic Council. The event starts at 2045BST/1545ET.
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