Mexico Peso Trade Disrupted by Election Surprise

Reported 6 months ago

In Mexico, a two-year trend of profiting from the peso was upended by the recent presidential election shock, where Claudia Sheinbaum's victory strengthened the ruling leftist party. The peso plummeted by 5%, stocks initially fell over 6%, and risk premiums on Mexican assets surged. Investors face uncertainty as Sheinbaum's win could lead to significant legislative changes, impacting strategies in emerging-market investing and prompting a rethink of bullish recommendations on the peso.

Source: YAHOO

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