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Mexican Peso recovers against USD on eve of “coin toss” US presidential election

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  • The Mexican Peso pushes higher against the US Dollar on Monday as predictions of a Trump victory in the presidential election give way to doubt. 
  • Where could the Peso end up after the election? Four scenarios for the Mexican currency.
  • USD/MXN peaked at a new year-to-date high of 20.29 on Friday and then opened a gap down on Monday.  

The Mexican Peso (MXN) trades mixed in its key pairs on Monday. The Peso is rising against the US Dollar (USD) as the “Trump trade” – which has proven positive for the Greenback – fades due to increased doubts about the outcome of the US presidential election. 

The USD is further under pressure as concerns mount that post-election market volatility might encourage the Federal Reserve (Fed) to slash interest rates by another 50 basis points (bps) (0.50%) at its November meeting on Thursday to act as a “tranquilizer”. 

Against the Euro (EUR), however, MXN is edging lower, as the shared currency gains mild support from recent solid Eurozone Unemployment and IFO survey data. Versus the Pound Sterling (GBP), the Peso seesaws between tepid gains and losses as Sterling attempts to reboot after the dust settles after the Autumn government’s budget sell-off.   



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