Mexico

One must wonder how much of a “Done Deal” is already priced into USD/MXN.

There is the possibility that USD/MXN can gap lower on the reopen.

Banxico is widely expected to cut interest rates by 25bps for the third time.

Mexico’s currency may struggle to extend trade truce gains

USD/MXN bulls will buy dips, as the pair had pulled back and held previous support.

Today the Argentinean government asked the IMF to restructure a $57 billion loan

USD/MXN finally muscled its way through the 19.7700 level

The Central Bank of Mexico cut overnight interest rates by 25bps, to 8.00%.

News that US Congress could challenge Trump’s tariffs on Mexico saw a reversal of fortunes for a bruised USD, creating a series of potential reversal patterns for some USD markets.

Equity futures are broadly lower, thanks to Trump’s latest tariff threat on Mexican goods. Which could make for a lively US open unless we see a reversal of negative sentiment.

It appears that polls and projections in the past few days and weeks have turned out to be severely inaccurate in predicting the outcome of the 2016 US presidential election. After a long and heart-pounding election night, Donald Trump achieved a market-shocking upset by pulling ahead from behind and ultimately defeating Hillary Clinton to become the new President-elect of the United States. Additionally, Republicans retained control in both the US Senate and House of Representatives for a clean GOP sweep.

Stock markets, the dollar, gold, and the Mexican peso all reacted sharply over reports on Sunday that the FBI has not discovered any further incriminating evidence in its re-launched review of Presidential Candidate Hillary Clinton’s past emails. FBI Director James Comey wrote in a letter to Congress, “based on our review, we have not changed our conclusions that we expressed in July with respect to Secretary Clinton.” In July, the FBI had stated that it would not pursue charges against Clinton over her use of a private email server when she was US Secretary of State.

Despite a generally ailing US dollar on Tuesday due in part to heightened risk imposed by next week’s elections, the greenback rose sharply against the Mexican peso as Donald Trump’s presidential prospects continued to be lifted by Hillary Clinton’s ongoing email troubles.

Despite acute US dollar strength throughout the month of October thus far, the USD/MXN currency pair has been in a virtual state of free fall due to a sharp and prolonged rebound for the Mexican peso that has corresponded with the deterioration of Donald Trump’s campaign for the US presidency.

The third and last debate between the two main candidates in the final stretch before the US presidential election is set to take place in Las Vegas on Wednesday night. It’s rather fitting that the near-culmination of the two rivals’ bitter back-and-forth feuding should occur in a city known best for its gambling industry – it’s largely a matter of chance as to what will be in store for the nation and the world in this heavily-anticipated bashing contest.

When it comes to currencies, the highly-touted “Trump Trade” has revolved largely around the Mexican peso. It has been no secret that US Presidential Candidate Donald Trump’s heavily protectionist trade policies, not to mention his stance on immigration, have targeted Mexico in particular. Besides proposing to build a wall between the US and Mexico, Trump has also repeatedly expressed his staunch opposition to the North American Free Trade Agreement (NAFTA) and has proposed broad restrictions on both Chinese and Mexican imports. The result has been increasing speculation that if Trump is seen to win the presidency, the Mexican peso could suffer dramatically against the US dollar.