Credit Suisse Revises Up Their MXN Peso Forecasts Joaquin Monfort - Pound Sterling Live
go to original October 12, 2016

The Mexican peso has lost almost half its value since 2014, but there are signs it’s starting to rebound. What are the factors behind the drop and how might the U.S. election play a role in a comeback? And what does a struggling peso mean for local Mexican businesses. (CCTV America)

The Mexican Peso has recovered and is set to go higher versus the Dollar according to strategists at Credit Suisse.

Donald Trump’s poor performance in televised debates and a tape released of him talking in a derogatory way about women (in which he admits amongst other things of trying to seduce a married woman by taking her furniture shopping) have lowered his chances of reaching the white house to only 17%, according to Credit Suisse’s Strategist, Alvise Marino.

This, in turn, is expected to support the peso as well as potentially weigh on the dollar.

The peso weakened when Trump was doing well in the polls as his anti-trade agenda was expected to hurt neighbours like Mexico the most.



...The widening lead opened up by Hillary Clinton in the race to the White House, however, now means it is highly unlikely these things will come to pass, and the resulting recalibration should support a rebound in Mexico.

The current USD/MXN exchange rate is 18.9850 but expected to fall to 18.00 in three months from 20.00 previously, and from 19.50 in 12 months to 19.00.

Read the rest at Pound Sterling Live

Related: How the Mexican Peso Became Tied to the Whims of the American Voter (Yahoo)

Related: UN Revises Down Forecast for Growth in Latin America, Carribbean (Reuters)

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