Mexican Peso Gains

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Mexican Peso Gains

Mexican Peso Gains On Political Uncertainty

The Mexican Peso (MXN) is in a strong position against other key currencies on Monday. It seems that the Mexican Peso (MXN) is benefiting from political uncertainty in the USA, the UK, and other key economies.

That's why the Mexican Peso (MXN) has become an attractive option for foreign investors, as they can get higher interest rate while totally skipping any of the political uncertainty attached with USD, EUR, & others.

Mxn Gains Against Eur, Usd, Gbp

One of the noteworthy achievements of the Mexican Peso (MXN) was its gains against the Euro. The Euro has come under pressure recently after the announcement of the French elections. The outcome of the French elections shows no party has won the majority, which could lead to more political uncertainty.

Meanwhile, the US Dollar has found a little bit of support as the chances of a Trump win have increased after rumors that Biden will step down due to health reasons. Trump's policies about the economy are very clear - He proposes tax cuts and will keep the rates at a high level in the USA.

Right now, 1 USD is worth 18 MXN while the exchange rate of EUR/MXN is around 19.50. Similarly, the exchange rate of the GBP/MXN is around 23.11 with the MXN having the upper hand.

As the MXN's strength comes from political uncertainty, it will likely fade away once the ground situation clears up. The UK's elections are already over while the French elections will not keep the EUR under pressure for much longer.

Similarly, the US election will happen on November 2024 which is still a long way to go. That's why, it is safe to say that the strength of the Mexican Peso (MXN) is only for the short-term. However, rate cuts from the ECB, BoE, and the US Federal Reserve could make the MXN a great choice.

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