TRUDEAU SAYS IT LOOKS LIKE BOC WILL BE LOWERING RATE AGAIN

MNI BRIEF: Canada Commits To Just One Of Three Fiscal Anchors

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI China Daily Summary: Tuesday, December 10

MNI: USDA: 2024/2025 CORN PRODUCTION EST 15.14B BSL

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

USDMXN Surges as Markets Ponder Sheinbaum Supermajority

MEXICO
  • With MORENA looking set to secure a supermajority in both the Lower House and in the Senate, markets are beginning to ponder the potential for a Sheinbaum administration to approve changes to the constitution. Constitutional amendments, and especially those concerning changes to the judiciary, can often garner international attention an unnerve investors due to perceptions of meddling with democratic institutions.
  • This has prompted some sharp peso weakness in recent trade with USDMXN rising as much as 1.6% on the session to a high of 17.3036. The pair is now back to 17.2150 amid heightened volatility. USDMXN began to show signs of altering its downward trajectory last week as the election approached and the pair has now extended its reversal from the May lows to over 4%.
  • Attractive carry and low volatility, alongside the nearshoring thesis boosting FDI and future exports, have continued to underpin solid MXN fundamentals. However, potential significant political changes will be monitored closely in assessing the short-term path for the peso.
  • Recent gains highlight a short-term corrective technical cycle, and this has resulted in a move above the 50 -day EMA, at 16.8497. The continuation higher signals scope for a climb towards 17.3709, the 50.0% retracement point of the bear leg between Apr 19 - May 21.
EM BulletHomepagemarkets-real-timeBulletEmerging Market News
EM BulletHomepagemarkets-real-timeBulletEmerging Market News

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.