The post Mexican Peso recovery falters after traders shrug off Banxico’s intervention warning appeared on BitcoinEthereumNews.com.

The Mexican Peso briefly recovered on Thursday after the President of the Banxico warned she will prop up the Peso if volatility persists.  The recovery falters on Friday, however, as traders continue beating MXN lower following the outcome of the June elections.  USD/MXN appears to end its correction and resume its bullish trend.  The Mexican Peso (MXN) trades between half a percent and over one percent lower in its most traded pairs on Friday as markets continue to fret about the proposed policies of Mexico’s newly elected left-wing government. The Peso is additionally pressured by a squeeze on overweight long positions that have built up after a multi-year period of appreciation for the Mexican currency.   At the time of writing, a single US Dollar (USD) buys 18.62 Mexican Pesos, EUR/MXN is trading at 19.92 and GBP/MXN at 23.67. Mexican Peso temporarily recovers after intervention, then sinks The Mexican Peso backs and fills on Friday after the previous day’s steep rally, which came on the back of verbal intervention by the President of the Banco de Mexico (Banxico), Victoria Rodriguez Ceja, who said Banxico would step in to prop up the Peso if volatility became too “extreme”. On Friday, however, traders continue to apply pressure in line with the downturn since the results of the Mexican elections on June 2. These led to a victory for President-elect Claudia Sheinbaum and her left-wing coalition Sigamos Haciendo Historia (SHH). SHH won a supermajority in the Mexican house of deputies and came two seats away in the senate. This will make it easier for incumbent President Andres Manuel Lopez Obrador (AMLO) to push through radical amendments to the constitution that have set markets on edge.  The raft of 20 proposed amendments and reforms range from rights to higher minimum wages and an increase in state-sector pensions,…

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Filed under: News - @ June 14, 2024 6:24 pm