The Mexican Peso weakens after the news that Claudia Sheinbaum has won the Mexican presidential election.
Sheinbaum is likely to be more “disciplined” than her predecessor but continue his generous welfare programmes, say analysts.
Her plans to raise the minimum wage are likely to drive growth and consumer spending but could increase inflation, economists say.
The Mexican Peso (MXN) edges lower in its key pairs on Monday after the news that Claudia Sheinbaum is set to win the Mexican presidential election with a comfortable majority. Sheinbaum is expected to continue the legacy of her predecessor, mentor and fellow Morena party colleague, Andrés Manuel López Obrador.
Asian stock markets have mostly had a positive session, maintaining the good mood of the US markets at the end of last week. Chinese Caixin Manufacturing PMI data for May released on Monday beat expectations, showing further expansion in the sector. Despite MXN falling, a positive market mood is generally supportive of the Mexican Peso.
USD/MXN is exchanging hands at 17.05 at the time of writing, EUR/MXN is trading at 18.51 and GBP/MXN at 21.71.
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